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Stephen Seawright

The Hang Seng Index rose 0.95 per cent yesterday in futures-led trading amid confidence blue-chips Cheung Kong and Hutchison Whampoa would report strong interim earnings.

 The blue-chip index rose 129.25 points to 13,608.38 on turnover of $7.02 billion.

 Analysts said futures-led trading in the cash market as Monday's expiry for the August index contract neared.

 'The Hang Seng Index was largely futures driven,' Celestial Asia Securities director Eugene Law Ka-kin said.

 Investors expected strong results from Li Ka-shing's flagship companies Cheung Kong and Hutchison Whampoa, which were announced after the market closed.

 Hutchison's results came in below expectations while Cheung Kong's were in line with analysts' forecasts.

 Core Pacific-Yamaichi research director Alex Tang Yee-yuk said: 'The anticipation of good results coming in from blue-chip companies has been the main reason for the uptrend of the market.'  HSBC helped drive the Hang Seng Index up 70.5 points as the counter rose 1.82 per cent to $97.75.

 Guangdong Investment was the largest blue-chip gainer, rising 7.94 per cent to $1.63 amid speculation over an agreement between creditors and the company.

 'It looks like we are going to see some agreement between the Guangdong government and creditors,' Mr Tang said.

 The red-chip index gained 2.21 per cent to 1,165.07 on expectations talks with the United States on China's World Trade Organisation admission would resume.

 The H-share index inched up 0.31 per cent to 582.02 after stronger gains on Wednesday's market.

 Nanjing Panda led H-share gainers, rising 18.51 per cent to 96 cents as the firm could benefit from its parent's debt restructuring.

 China Eastern Airlines gained 1.03 per cent to 98 cents (Stock Split, Page 12).

 Brokers also said a possible 25 basis-point domestic rate rise had been factored into the market.

 Some technology stocks drew investor attention, with Pacific Century CyberWorks new shares rising 3.4 per cent to $4.55 on substantial turnover of $586.55 million.

 Hanny gained 3.61 per cent to $2.15 and Great Wall Technology rose 6.5 per cent to close at $4.50.

 'There is still continued interest on technology-related stocks,' Mr Law said.

 Other analysts felt technology stock buying was selective, with Stone Electronic falling 1.66 per cent to $1.77 and Legend dropping 0.66 per to $7.45.

 Analysts were divided on the future direction of the stock market.

 Mr Law said: 'To go higher there must be a reason . . . and I don't see a reason for the fund managers to indiscriminately buy index stocks.'  Mr Tang said: '[Today] or early next week the market is likely to challenge 14,000.' 



Futures lead blue chips up