Index edges higher as blue chips and H shares regain attraction after profit taking
Renewed buying of blue chips after a couple of sessions of profit taking pushed the Hang Seng Index 0.79 per cent higher yesterday, but the upside was capped as many investors believe further consolidation is needed in the near term after a strong end to the third quarter.
Sun Hung Kai Properties and BOC Hong Kong led this trend, while outside the blue-chip index H shares also attracted buyers.
'There was a little bit of window dressing but investors were also repositioning themselves for the fourth quarter,' said Alex Tang Yee-yuk, the head of research at Core Pacific-Yamaichi.
'In the final quarter they will be seeking good profits by chasing laggards such as telecoms.'
The index added 88.59 points to finish at 11,229.87. It rose 17.25 per cent in the past quarter as fears about Sars, which dominated the news flow in the second quarter, gave way for improving economic fundamentals as well as a pick-up in property transactions.
