In a row for 2 days, Hong Kong stocks have increased, as the benchmark gauge of the same has posted its biggest gain in last 2 months. The positive economic data of US helped Hong Kong share market big time and apart from that, several other companies such as New World Development and Sino Land exceeded the initially estimated profit figures.
The benchmark gauge Hang Send Index jumped up by 2% and is currently at 23020.27. This marks the gauge’s steepest gain since 2nd January. In February, the gauge had declined by 3%. On the other hand, the Hang Seng China Enterprises Index increased by 2.6% and is now at 11437.17.
According to the Institutional Sales Director of UOB Kay Hian, Steven Leung, the sharp rebound in the US market has helped the Hong Kong shares on today. Now, whether the rally will continue in future or not depends a lot on what the Chinese Government has to say at the annual National People’s Congress, scheduled to happen on 5th March. Incidentally, during the same, the Government will be setting the growth target for 2013.
Hong Kong Government introduced additional property curbs and there was a huge concern that US will rein in stimulus. Apart from that, Chinese Government also hinted that it may take necessary actions to cool down the housing market. Because of all these factors, Hong Kong shares declined earlier this month.
Sino Land shares increased by 3.4% and is currently at HK$14.10 as it reported that the 1st half underlying profit of the same surged up by 81% to HK$4.49 billion. This is more than the initial predictions made by the analysts of HK$3.9 billion.
The renowned Hong Kong builder New World Development increased 3.8% as well to HK$14.28. Its underlying profit actually increased by 45% to HK$4.1 billion, much more than the initially predicted HK$3.26 billion.
China Coal increased by 5.1% and each of its shares are currently priced at HK$7.69. The largest copper producer of China, Jiangxi Copper Co. added 0.9% as well. On the other hand, the largest supplier of aluminum in China, Aluminum Corp. of China Ltd. saw its shares jumping up by 1.5% to HK$3.35.
The Hang Seng Index Futures increased by 2.3% and is at 22972 now. The HSI Volatility Index declined by 11% to 15.19, its highest since 18th June.