Hong Kong shares end 0.31pc higher

PUBLISHED : Friday, 26 July, 2013, 1:57pm
UPDATED : Thursday, 01 August, 2013, 4:21pm

Hong Kong shares closed up 0.31 percent Friday following small gains on Wall Street and after China unveiled some measures to help boost the mainland economy.

The benchmark Hang Seng Index added 67.99 points to 21,968.95 on turnover of HK$44.43 billion (US$5.73 billion).

Extending a week of quiet trade in the Chinese city volume totaled HK$44.43, down from HK$45.33 billion on Thursday. At the start of the week turnover was just HK$38.49 billion, the market’s lowest point since September.

 We still believe 22,000 is a kind of resistance
Steven Leung, UOB Kay Hian

The slow trade has meant hope the market might push the 22,000 points barrier this week prove elusive.

“We still believe 22,000 is a kind of resistance,” Steven Leung, head of institutional sales at UOB Kay Hian, told the Dow Jones Newswires.

Investors, he added, were still in profit-taking mode after the index rallied more than 2 per cent on Tuesday.

Financial shares were one of the few areas that saw some gains.

Mainland bank shares closed mostly higher. China Construction Bank rose 0.4 per cent to HK$5.78 and Bank of China gained 0.3 percent to HK$3.28.

Shares of Hong Kong insurer and index heavy AIA rose 0.4 per cent to HK$35.85 after reporting first-half results that comfortably beat expectations. The company reported a 26 per cent jump in the value of new business, topping the 22 per cent growth expected by analysts.

Chinese shares ended down 0.51 per cent on Friday due to persistent worries over the health of the domestic economy, dealers said.

The benchmark Shanghai Composite Index fell 10.32 points to 2,010.85 on turnover of 65.5 billion yuan (HK$82.2 billion).

The market will likely be stuck in consolidation mode before there are signs of an economic recovery
Zhang Yanbing, Zheshang Securities

The index rose 0.91 per cent for the week on hopes for policies to boost economic growth.

“The market will likely be stuck in consolidation mode before there are signs of an economic recovery,” Zheshang Securities analyst Zhang Yanbing said.

A government plan to cut excess production capacity in 19 sectors hit coal producers and steel firms.

Qinghai Jinrui Mineral Development lost 4.29 per cent to 7.81 yuan while Yanzhou Coal Mining fell 2.28 per cent to 9.87 yuan.

Inner Mongolia Baotou Steel Union dropped 2.03 per cent to 3.87 yuan and Chongqing Iron & Steel shed 1.06 per cent to 2.79 yuan.

Heavyweight financial shares also fell.

Industrial Securities lost 2.01 per cent to 9.26 yuan, Agricultural Bank of China fell 1.20 per cent to 2.48 yuan and China Life Insurance slid 0.61 per cent to 13.13 yuan.