Hongkong Telecom gained 3.13 per cent yesterday as sentiment continued to improve towards the once-maligned stock.
Telecom's cost-cutting measures have given the shares a boost, making the utility one of the best performers among blue chips in this week's volatile market.
Some analysts said after last year's sell-off by investors, Telecom was looking attractive again.
Andrew Harrington, analyst at Salomon Brothers, said: 'Its strength is not due to one reason, but a combination of reasons.' Telecom climbed 45 cents to $14.80, with turnover a solid $148.64 million.
Much of the buying was done by foreign funds, many of which deserted the stock last year after it lost its 73-year-old monopoly on territory telephone services.
The passage of time indicated forecasts of the stocks' demise had been premature, analysts said.