Property and mainland stocks gain on hopes for yuan revaluation, end to rate rise
The Hang Seng Index extended its gaining streak to eight days yesterday, supported by buying of mainland-related stocks and local property counters as the market continues to anticipate an imminent end to the interest rate rise cycle and a further revaluation of the yuan.
But traders said the rally since the start of the year would run out of steam as the Lunar New Year approached. They said the benchmark index, which closed up 68.49 points or 0.44 per cent at 15,719.37, had been overbought and that it would experience increased volatility once the liquidity-driven rally completed its course.
Turnover was $31.38 billion, 0.73 per cent more than the previous day.
Gold smelter and producer Lingbao Gold saw $950.25 million worth of shares change hands on its first day of trading. The stock, which rose 50.15 per cent at one stage, closed at $4.425, or 32.88 per cent above its offer price of $3.33.
'The rally in the Hang Seng Index had been sustained by the good performance in the two major Asian stock markets, Japan and South Korea,' said Ben Kwong Man-bun, director of investment services at KGI Asia.
