Hong Kong stocks climbed for a fourth consecutive session yesterday, lifted in late trade by better than forecast results from a government land auction. The Hang Seng Index rose 51.1 points, or 0.44 per cent, to 11,645.43 as investors focused on the sale of two residential sites, turning their backs on Wall Street's drop on Monday. Credit Suisse First Boston head of equity trading Richard Verin said: 'The underlying tone of the market is firmer . . . They had a good auction. How much more downside [for residential unit prices] is there?' Turnover was $7.52 billion, which was in line with Monday's $7.6 billion but still well down on the $9.14 billion average since the start of the year. Core Pacific/Yamaichi associate director Terry Cheung Kam-shing said: 'The sentiment has changed marginally, despite negative news on the real economy, like retail sales. The stock market is forward-looking.' Figures released on Monday showed that retail sales fell 12 per cent in January from a year earlier. Sites on the Peak and in Yuen Long auctioned yesterday fetched a total of $1.21 billion. Nan Fung Development paid $920 million for a 143,462 square foot Mount Austin Road site, topping most analysts' calls for the plot. As the number came in, the market shook off its trend sideways and pushed higher. Sino Land, in which Nan Fung holds a 10 per cent stake, was the chief beneficiary. It rose 8.45 per cent to $3.85 despite Nan Fung saying that it intended to develop the site without Sino's involvement. Sino reports its interim results today. As a group, blue-chip developers rose 1.16 per cent, with New World Development and Cheung Kong posting gains. The second site was sold to Hing Kong for $290 million. Mainland-related shares firmed, with the red-chip index tracking 0.64 per cent higher to 1,704.17 points, while the H-share index rose 0.51 per cent to 719.06 points. There was continued comment in the market on Zhu Rongji's performance last week after his elevation to the premiership. Mr Zhu endorsed the Hong Kong currency peg with an assured performance before the international media, a display seen as impressing overseas investors. Brokers were cautiously optimistic about the near-term outlook. Mr Verin said: 'The market's got lots of resilience. It keeps attempting the 11,800 level and one of these days it is going to make it.' KEY FIGURES Close: 11,645.43 (+ 51.1) Turnover: $7.52 bln Volume: 4.58 bln shares Day's high: 11,688.65 Day's low: 11,516.76 Advanced: 326 Declined: 258 Unchanged: 542 March futures: 11,640 (+ 35) April futures: 11,650 (+ 40)
