Hong Kong stocks closed up for a
second straight session on Tuesday, spurred by gains on Wall
Street overnight, while higher gold and copper prices fuelled a
rally on commodity-related shares.
Chinese gold miners rose percent after gold prices inched up
on Tuesday. Jiangxi Copper (0358.HK), China's biggest integrated
copper producer, rose 4.12 percent after copper prices rose.
The benchmark Hang Seng Index .HSI was up 1.87 percent, or
382.46 points, at 20,811.53. Volume of trade rose to HK$56.3
billion ($7.3 billion) from HK$43.7 billion on Monday, the lowest
since Sept. 15.
The Hong Kong stock market just followed the rebound on Wall
Street, said Ben Kwong, chief operating officer at KGI Asia. At
this point, it's too early to say whether Hong Kong has already
riden out the correction trend.
Cement maker China Resources Cement (1313.HK) was flat at
HK$3.90 on its market debut, reflecting souring sentiment towards
initial public offerings. The stock opened down 4 percent
There has been a lack of interest in recent IPOs after
Metallurgical Corp. of China (1618.HK) fell below its IPO price,
said Belle Liang, head of research at Core Pacific-Yamaichi.
There are more IPOs coming in the fourth quarter, but we
have heard that companies are postponing their listings or
cutting their IPO prices. There is a lot of negative news
Metallurgical Corp of China, a construction company that
helped build Beijing's Bird's Nest Olympic stadium, fell nearly
15 percent below its IPO price on its first day of trading on
Sept. 24, the worst trading debut in Hong Kong this year.
Gold miners soared after gold prices inched up towards $1,020
per ounce on Tuesday.
Zijin Mining rose 6.3 percent and Zhaojin Mining (1818.HK)
gained 7.4 percent. Rivals Real Gold Mining (0246.HK) advanced
6.44 percent and Lingbao Gold Co (3330.HK) rose 4.20 percent.
Other commodity stocks were also up. Aluminium Corporation of
China (2600.HK) rose 5.3 percent, while Angang Steel (0347.HK)
gained 5.32 percent.
The China Enterprises Index .HSCE of top locally listed
mainland Chinese companies was up 2.93 percent at 11,986.11, led
by a 7.7 percent gain in Harbin Power (1133.HK).
Cathay Pacific Airways (0293.HK) rose 6.06 percent. Hong
Kong's leading air carrier said it posted its best weekly
passenger load factor for 2009 last week.
Consumer goods exporter Li & Fung (0494.HK) rebounded,
gaining 3.35 percent. The stock closed down 4.7 percent on Monday
on concern that a rising jobless rate would further cut consumer
spending in the United States.
Handset maker Foxconn International Holdings (2038.HK) rose
4.51 percent. Bank of America Merrill Lynch upgraded the stock to
buy with a target price of HK$5.80 on improving earnings
outlook for 2010.
Hong Kong shares have fallen in six out of the last eight
sessions to a three-week low on Friday. Shares posted modest
gains on Monday as investors hunted for bargains.
Markets in China are closed for a public holiday. Trading
will resume on Oct. 9.