Hong Kong shares rebound, led by China Mobile
HONG KONG, Sept 27 (Reuters) – Hong Kong stocks rebounded 0.74 percent in Wednesday morning trade, helped by Wall Street gains, as investors picked up battered shares like China Mobile Ltd. following sharp falls in the last session.
The benchmark Hang Seng Index had risen 127.65 points to 17,435.73 by lunch. Turnover was HK$16.2 billion (US$2.1 billion), down from Tuesday morning’s HK$17.1 billion.
“We’re seeing a technical rebound — yesterday, the market overreacted,” said Peter Pak, vice president of BOCI Research Ltd., adding that the market should hold between 17,400 and 17,500 before the expiry of the index futures on Thursday.
“The tricky part is next month. There are lots of bearish investors because of the huge IPOs that could dry up liquidity in October,” Pak said, noting that the market had corrected sharply following the initial public offers by China Construction Bank and Bank of China .
China Mobile, the world’s largest cellular carrier by subscriber, ended the morning up 1.5 percent at HK$54.30, after shedding 4 percent on Tuesday.
China Life Insurance , the country’s top life underwriter and the morning’s most active stock, also found a toehold, rising 2.1 percent to HK$15.34, after dropping more than 6 percent on Tuesday.
Rival Ping An Insurance climbed 1.3 percent to HK$28.15. China’s second-largest life insurer said on Wednesday it plans to sell up to 1.15 billion A-shares and the money will be used to replenish its capital. (For details, see [ID:nHKG295662]).
But Aluminum Corp. of China Ltd. , the world’s second-largest alumina maker, slid a further 1.8 percent to HK$4.84, a day after it slashed spot product prices for the third time in less than two months. (For details, see [nHKG361199]).
Local lender BoC Hong Kong (Holdings) Ltd. jumped 4.8 percent to HK$17.40 amid renewed speculation that it may be privatised by parent Bank of China . JPMorgan said in a favourable research note that BoC was set to further its wealth management capability and China strategy.
Foxconn International Holdings Ltd. slid 2.1 percent to HK$23.30 after Citigroup downgraded its stock rating of the mobile handset maker to “sell” from “buy”, citing a rich valuation at 19 times 2007 estimated earnings.
Trading firm Li & Fung hit a record high for a second straight day, after U.S. consumer confidence data beat forecasts and pushed up the dollar. Its shares jumped 3 percent to HK$19.72.
The stock has derived its recent strength on speculation about M&A prospects after the company recently raised more funds through a share placement, market watchers said.
Source- http://asia.news.yahoo.com
Technorati : China, China Mobile, Hong Kong, Mobile
Ice Rocket : China, China Mobile, Hong Kong, Mobile
