|
HK stocks rise on talk of China rate cut
2008-11-21
HONG KONG - Hong Kong stocks advanced Friday, breaking a four-day losing streak, on bargain-hunting and speculation that China will cut interest rates over the weekend. The Hang Seng index rose 360.64 points, or 2.93 percent, to close at 12,659.2. Shares opened lower after Wall Street's overnight losses but rebounded as investors bought undervalued stocks for short-term trading as they expected China to lower interest rate again soon to stimulate growth. "There were some bargain hunting, given some stocks are quite cheap after falling for four days," said Linus Yip, a strategist at First Shanghai Securities. "But they are only short-term investment. Investors are still very reluctant to enter the market." Higher U.S. stock index futures pointing to a recovery also helped boost the sentiments, Yip added. Financial stocks were higher with banking giant HSBC Holdings PLC adding 1.5 percent to 77.05 Hong Kong dollars. China Construction Bank gained 0.2 percent to HK$3.81 while Standard Chartered Bank jumped 4.5 percent to HK$94. Among local developers, Cheung Kong added 1.8 percent to HK$67.05. Sun Hung Kai Properties Ltd., Hong Kong's biggest developer by market value, was up 1.3 percent to HK$52. ___ On the Net: Stock Exchange of Hong Kong: http://www.hkex.com.hk
| 
