Hang Seng soars again to pass 13,000
SUZANNE HARRISON
Updated at 8.28pm HK Time:
An inflow of foreign money saw Hong Kong
stocks rocket past the 13,000-point level just
one trading day after breaking down the then
key resistance level of 12,000.
The benchmark Hang Seng Index soared to a
high of 13,079.50 in afternoon trade before
settling back to close at 12,766.44, up
276.14, or 2.21 per cent.
The push came as foreign money drove
markets all over Asia higher.
Turnover in Hong Kong was a massive
$14.75 billion, the highest since the
government's official intervention in the stock
and futures markets last August.
The index's surge to a 17-month high of
12,490.30 on Friday came a little early for
some market insiders. It was the highest level
since October, 1997.
Some analysts were surprised the index
pushed past 13,000 on Monday, but said the
buying came from European and US
institutions which did not want to miss the
rally.
''This is a liquidity-driven market and I think
people, mainly from overseas, have seen the
sentiment towards Asia improve and basically
they want to get in now,'' SG Securities head
of research Philip Mok said.
''The market tends to move away from
fundamentals ... and there's not much you
can do but join the party.''
Boosting the shares on Monday was market
heavyweight HSBC Holdings, which finished
1.08 per cent stronger to $280.00 after
reaching an all-time high of $284.00. It's
previous high was $279.00 in the summer of
1997.
Property stocks fared particularly well ahead
of the government's land auction on Tuesday.
Cheung Kong Holdings gained 2.60 per cent
to $69.00, with Sino Land closing up 6.84 per
cent to $4.82. Most Asian stock markets
surged Monday, with only Tokyo, where
prices slipped on jitters about earnings
prospects of hi-tech bucked the trend.
The Nikkei-225 average lost 177.37 points,
or 1.05 per cent, to close the day at
16,674.21.
Indonesian shares soared on a continued flow
of foreign funds into the market.
The Jakarta Stock Exchange's Composite
Index rose 6 per cent, or 28.615 points, to
close at 508.147.
In the Philippines, a series of measures
implemented by the central bank to
encourage bank lending propelled the main
index to its highest level in 20 months.
The 30-company Philippine Stocks Exchange
Index surged 122.34 points, or 5.5 per cent,
to 2,355.98 - its highest level since it reached
2,300.82 points on August 26, 1997.
The Philippine central bank's cut in its key
overnight rates Monday and the 1
percentage-point cut in the minimum liquidity
reserve requirement of commercial banks
Friday freed up billions of pesos in the
financial system.
South Korean shares also closed sharply
higher as investors bought blue-chip stocks on
news of the restructuring of the country's
biggest conglomerates.
Traders said Daewoo Group's plans to
announce its restructuring programme,
including the sale of some of its operations,
boosted the market. The Korea Composite
Stock Price Index rose 41.45 points, or 5.7
per cent, to 766.59.
In Singapore, share prices closed sharply
higher on huge liquidity inflows, traders said.
The Straits Times Index rose 4.1 per cent, or
72.39 points, to close at 1,842.31.
Malaysian shares closed higher as investors'
sentiment on the region's financial markets
turned positive. The benchmark Composite
Index closed at 615.42 points, up 16.01
points, or 2.7 per cent.
Australian shares closed higher, with the key
index rising to another all-time high following
strong gains in the resources and media
sectors. The All Ordinaries Index rose 13.3
points, or 0.4 per cent, to 3,113.1, eclipsing
the previous all-time closing high of 3099.8
set Friday.
Share prices in Taipei closed higher, too with
the market's key Weighted Stock Price Index
rose 41.68 points, or 0.5 per cent, to
7,623.18.
New Zealand share prices closed higher for
the fourth straight session. The benchmark
NZSE-40 Capital Index rose 7.03 points, or
0.3 per cent, to 2,212.81.
Thai share prices closed higher as foreign
cash continued to buoy the market despite
signs of some profit-taking. The SET index
rose 9.65 points, or 2.4 per cent, to 412.19.