New stocks fare well on index

NEW entrants to the prestigious Hang Seng Index made strong gains yesterday, while those failing to gain a place came under heavy selling pressure from disappointed investors.

The smaller capitalised stocks were the best performers because of the lack of available scrip. Johnson Electric surged 9.8 per cent to close $2 higher at $22.50, making it the best performing new index stock. SCMP rose 18 cents to $4.80.

Brokers said many of the new stocks did well because their inclusion in the index was unexpected and had not been factored into the share price.

Amoy Properties was the only counter to buck the trend, falling 10 cents to $10.30.