Hong Kong stocks end 0.48pc higher

PUBLISHED : Monday, 28 October, 2013, 3:06pm
UPDATED : Monday, 28 October, 2013, 7:39pm

Hong Kong stocks closed 0.48 per cent higher on bargain-buying on Monday and following a positive lead from Wall Street.

The benchmark Hang Seng Index added 108.24 points to 22,806.58 on turnover of HK$48.10 billion (US$6.21 billion).

The modest rise came after the index fell nearly 800 points last week amid signs of stress in China’s financial system.

Expectations may already be getting too far ahead of reality
Mark To, Wing Fung Financial

The index will rebound further, Wing Fung Financial head of research Mark To said, while advising investors to steer clear of bets on China’s policy meeting next month.

“Expectations may already be getting too far ahead of reality,” To said, referring to a high-profile meeting next month of top Communist Party officials who may introduce new economic reforms.

Aluminum Corp of China climbed 2.04 per cent to HK$3.00, Bank of China rose 0.29 per cent to HK$3.46 and Cathay Pacific Airways gained 1.85 per cent to HK$15.40.

Chinese shares ended flat. The benchmark Shanghai Composite Index edged up 0.91 points to 2,133.87 on turnover of 77.9 billion yuan (US$12.8 billion).

“While companies are reporting earnings, investors are focused on reform,” said Shenyin Wanguo Securities analyst Qian Qimin.

“So far the market has digested all the reform news so it awaits more,” he added.

China is expected to discuss economic policies and reform measures at a Communist Party meeting next month.

Gains in agricultural sectors were offset by losses in coal miners and liquor producers.

Heilongjiang Agriculture surged by its 10 per cent daily limit to 12.00 yuan while hog-raiser Hunan New Wellful advanced 4.21 per cent to 6.43 yuan.

Guizhou Panjiang Refined Coal dropped 4.55 per cent to 8.60 yuan and Yunnan Coal Energy fell 3.92 per cent to 8.82 yuan.

Liquor maker Sichuan Swellfun slumped 8.55 per cent to 10.59 yuan and Hebei Hengshui Laobaigan Liquor lost 4.79 per cent to 22.08 yuan.