Telecoms drive a modest rise

Hong Kong marked its 10th day of gains yesterday as shares ended slightly higher on a surge of buying in the telecommunications sector.

The Hang Seng Index inched 35.45 points higher to close at 10,100.77, supported partly by futures-related buying before the expiry of the November futures contract on Thursday.

But analysts warned that the rally lacked strong momentum as the market had managed to tally only modest daily gains and turnover, which yesterday reached just HK$4.83 billion, remained slim. The benchmark index is up 5.43 per cent, or 518.89 points, since the winning streak began.

Tung Tai Securities associate director of research Kenny Tang Sing-hing said: 'The HSI may continue to move higher before the settlement [of the futures contract] but players are cautious and there's no real new money coming into the market.'

Analysts said investors had shifted attention to small and mid-cap stocks - wary of inflated blue-chip prices.

Yesterday saw telecoms and technology counters in favour, driven by recent Nasdaq strength and a shift in investor sentiment towards the badly battered sector. China Mobile, the second most-actively traded share, rose 0.96 per cent to $20.90 while China Unicom gained 2.63 per cent, or 15 cents, to $5.85, fuelled by futures-related buying.