The Hong Kong Benchmark Index Is Trading Near 19-Month High as Most Listed Shares Post Gains

The benchmark index of Hong Kong is already trading near the 19-month high of the same and most (Around 60% of the total listed companies) of the stocks listed have registered gains on today. The Hang Seng Composite Index actually rose by 0.2% on today. On the other hand, the Hang Seng China Enterprises Index of the mainland companies increased as well, by 0.2%. The Hang Seng China Enterprises Index of all the mainland shares is currently at 12,125.89. However, the Hang Seng Index declined by 0.1% and is currently at 23,590.91. The trading volume on Hong Kong market on today was 31% less when compared to the average trading volume of last 30 days.

The Portfolio Manager of IG Investment Ltd., Tim Leung stated that the market can never be expected to move along a straight line. Tim added that the Hong Kong market has already experienced a sharp rally and is currently consolidating. Tim commented further that the investors are currently trying to lock in the profit.

Incidentally, on 18th January, the benchmark index rose to its highest level in the last 19 months, thanks to a report which stated that the economic growth of China has increased for the 1st time in the last 2 years. Shares on the index are currently trading at an average 11.5 times value, in comparison to the actual estimated earnings. The same is 13.4 for Standard & Poor’s and 12.1 for the Stoxx Europe 600 Index.

China Vanke Property experienced a surge of 19% as its parent company has decided to move the trading of its foreign currency denominated shares to the Hong Kong market. On the other hand, the ZTE experienced a decline of 1.4% as the mobile equipment maker is expecting of a loss because of the delays in the network projects. China Shipping posted gains of 3.9% as the company reported the preliminary 2012 net income of 520 million Yuan. The company had a loss of 2.74 Yuan in 2011. Gome Electrical Appliances experienced a decline of 3% on today and each share is priced at 96 Hong Kong cents. The company recently reported closing some of the stores and this resulted the loss, according to analysts. The Hang Seng Volatility Index has increased by 0.3% and is at 14.10 currently.