The stock market in Hong Kong is trading in positive territory on Friday morning, taking cues from Wall Street where the major indices advanced for the third consecutive day on hopes of stabilization in the global economy. However, the market pared early gains as investors preferred to take profits after the market soared more than 1000 points on Thursday. Pledge for about $1.1 trillion in loans and guarantees by the G20 leaders in London and a relaxation in the mark-to-market accounting rules for banks also helped the markets post gains while the broader economic indices are still very weak.
On Thursday, the Dow closed up 216.48 points or 2.8% at 7,978, the Nasdaq closed up 51.03 points or 3.3% at 1,604 and the S&P 500 closed up 23.30 points or 2.9% at 834.
In Asian trading, crude oil is currently down $0.82 at $51.82 a barrel in electronic trading. Light sweet crude for May delivery closed up $4.25 at $52.64 a barrel on the New York Mercantile Exchange on Thursday, after hitting an intraday low of $48.45 and a high of $52.87, on improved demand prospects amid hopes the G-20 summit will help pull the world out of the economic crisis.
The benchmark Hang Seng Index opened at 14,548, compared to its previous close of 14,522, and is presently trading at 14,534, up 0.08% or 11.57 points.
Wharf Holdings, a conglomerate having interests in ports to property investments, is gaining 5.19%. Property stocks such as Henderson Land, SHK Properties, New World Development, Swire Pacific and Sino Land are advancing, while Hang Lung Property is down 4.51%.
Resource stocks are trading higher. Aluminum Corporation of China, or CHALCO, is gaining 1.74%, CNOOC is advancing 2.43% and PetroChina is adding 1.86%
At the same time, financials are trading mixed, on profit taking after the huge rally on Thursday. HSBC Holdings is losing 0.30%, while Hang Seng Bank is edging up 0.06%. Bank of Communications, BOC Hong Kong, ICBC and Bank of East Asia are gaining, while Bank of China and CCB are losing.
Insurance stocks are trading weaker. Ping An is losing 1.16% and China Life is down 0.37%.
China-related stocks are trading mixed. While China Resources is advancing 2.40%, China Mercantile Holdings is edging down 0.24% and China Overseas is down 4.64%.
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