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Sparks fail to catch fire

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A COMBINATION of disappointing interim results, rumours and the expiry of the July index futures contract provided the market with a spark yesterday.

The Hang Seng Index, however, dipped 3.28 points to 6,899.93 as renewed interest by Hongkong investors was offset by strong selling by foreign institutions.

Turnover was $3.06 billion with HSBC Holdings and Hang Seng Bank accounting for 21.4 per cent or $657 million.

Brokers said the keen interest in the two stocks was due to continued speculation that HSBC could sell 10 per cent of Hang Seng to a mainland-controlled company, with Shougang International the most recent suitor mentioned.

Nomura International vice-president Gary Wong said switching was another factor as investors moved into HSBC and backed out of Bank of East Asia, which yesterday released interim results below market expectations.

He said HSBC's interim results would be released on August 31 and they were expected to be quite strong. HSBC climbed $1 to $74 while Hang Seng gained 50 cents to $58.50.

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