The Hong Kong government's property tax concessions and expectations of another U.S. rate cut boosted property stocks Thursday and drove the main index higher for the third straight day.
The Hang Seng Index rose 107.85 points, or 0.4 percent, to 24, 591.69 after trading between 24,205.01 and 24,841.23.
Turnover reached 82.39 billion HK dollars (10.60 billion U.S. dollars), down from 99.35 billion HK dollars (12.77 billion U.S. dollars) Wednesday.
Traders said the uncertain outlook for the U.S. economy would lead to choppy trade in the near term. Local investors also welcomed billions of dollars in tax cuts and other relief measures handed out by the Hong Kong Special Administrative Region government after posting a record fiscal surplus.
To boost local consumption and property sales, Hong Kong Financial Secretary John Tsang said property taxes will be waived for the coming fiscal year ending in March 2009.
The Hang Seng property sub-index rose 1.4 percent to 32,313.71 after gaining 6 percent in the past two sessions. Sun Hung Kai Properties rose 2.3 percent to 142 HK dollars, bringing its rise since Tuesday to 9 percent. Cheung Kong jumped 1.3 percent to 119.90 HK dollars.
Chinese financial companies gained after recent declines on liquidity concerns on the mainland bourses. Ping An Insurance rose1.5 percent to 61.50 HK dollars, China Life Insurance gained 1 percent to 31.80 HK dollars and China Construction Bank climbed 1.5 percent to 6.05 HK dollars.
CLP, the larger of Hong Kong's two power suppliers in revenue terms, fell 1.1 percent to 61.65 HK dollars after its 2007 results came in below expectations. CLP's 2007 net profit rose 7 percent to 10.61 billion HK dollars (1.36 billion U.S. dollars) from 9.90 billion HK dollars (1.27 billion U.S. dollars) the previous year.
The finance sub-index rose 92.88 points, or 0.27 percent, to 34,634.46.
The commerce and industry sub-index went up 67.46 points or 0.46 percent to 14,680.39.
The utilities sub-index dropped 259.71 points or 0.60 percent at 43,221.06.
Source: Xinhua
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