Hang Seng Index reaches 44-month high, helped by falling oil prices and strong US retail sales data
Investors continued to pour money into the Hong Kong market yesterday, pushing the blue-chip index to a 44-month high amid heavy trading activity.
Optimism was underpinned by strong overseas markets, a continued decline in oil prices, ongoing speculation about a revaluation of the yuan and the surprise cut in Hong Kong interest rates last week.
Higher than expected United States retail sales data and consumer confidence numbers released last Friday also helped support stock markets across the region as they suggested economic growth in the US market - a key importer of Asian-made goods - remained on track.
The Hang Seng Index added 147.76 points to close at 13,932.22 after hitting an intraday high just above 13,950. The closing level was the highest since the index finished at 14,194.35 on March 9, 2001, but is 108 points short of this year's intraday high reached on March 1.
'I think the index will easily push through 14,000 as there are still a lot of laggard stocks that will trace this price gain and there is a lot of 'hot' money coming in from Europe, the US, Japan as well as from local funds,' said William Li, chief operating officer at Tai Fook Securities.
