Blue-chip developers soared Monday on news of strong residential property sales over the weekend, helping reverse early losses for Hong Kong's benchmark index despite lingering uncertainties over the U.S. economic outlook.
The benchmark Hang Seng Index rose 59.30 points, or 0.4 percent, to 17,121.82 after recovering from a low of 16,789.00 in the morning session.
Turnover fell to 58.85 billion HK dollars (7.60 billion U.S. dollars) from Friday's 64.35 billion HK dollars (8.31 billion U.S. dollars).
Analysts said they see only limited room for further gains in the near term for the blue-chip index, which they said has been heavily overbought following its recent rally. They expect the index to consolidate in a range of 16,500-17,500 in the coming sessions.
Property developers outperformed the broad market for the second session on investor optimism of a sustained recovery in the private residential market, driven by attractive mortgage rates and abundant market liquidity.
Local media reported Monday that Royal Green, a new development in the New Territories by Henderson Land, sold over 130 flats over the weekend. At a separate development by Sino Land, over 30,000 people waited in line amid rainy weather to visit one of its show flats, according to the media reports.
On Monday, the Hang Seng Properties Index jumped 5.4 percent to 22,953.56, its highest level in over eight months since closing at23,118 points on Sept. 10. Among the biggest gainers were Sino Land, which soared 9.2 percent to 12.82 HK dollars, while New World Development surged 8 percent to 13.80 HK dollars, Cheung Kong Holdings jumped 7.0 percent to 88.80 HK dollars, and Henderson Land rose 5.5 percent to 41.95 HK dollars.
The finance sub-index went up 41.24 points or 0.16 percent to 25,229.74.
The properties sub-index jumped 1,182.46 points or 5.43 percent at 22,953.56.
The commerce and industry sub-index went down 65.23 points or 0. 69 percent to 9,333.33.
The utilities sub-index rose 94.17 points or 0.26 percent at 35,716.60. (7.7435 HK dollars = 1 U.S. dollar)
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article