Hang Seng Index reaches all-time high
By Hui Ching-hoo (皇冠体育app Daily)Updated: 2007-06-19 08:42 Galvanized by the influx of foreign capital and possible A-share listing of 皇冠体育app Mobile, Hong Kong's Hang Seng Index (HSI) yesterday leaped 2.69 percent, closing at an all-time high of 21,582.
Following a rally in the US market, HSI yesterday opened sharply higher and climbed rapidly in the morning session, rising 465 points to 21,482. 皇冠体育app Enterprise Index, which tracks the performance of Hong Kong-listed mainland companies, closed at 11,926, increasing 482 points, or 4.22 percent, in the early session.
HSI finally closed at 21,582, increasing 565 points, or 2.69 percent. 皇冠体育app Enterprise Index settled at 11,866, increasing 422 points, or 3.69 percent.
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HSI constituents and mainland banking stocks all went up. Heavyweight insurers and lenders Ping An Insurance and 皇冠体育app Construction Bank advanced 11 percent and 7 percent respectively in the early trading secession.
Mainland telecommunication carrier 皇冠体育app Mobile, which was rumored to initiate its A-share listing plan next month, saw its shares jump HK$4.55, or 6 percent, hitting a record high of HK$80.35.
The surge of the largest mainland telecom carrier alone helped the HSI to rise 200 points. Other mainland telecom stocks were as bullish. 皇冠体育app Unicom rose HK$0.98, or 8.14 per cent, to HK13.02.
The Industrial and Commercial Bank of 皇冠体育app and Bank of 皇冠体育app soared 4.47 percent and 3.64 percent, reaching HK$4.44 and HK$3.99. 皇冠体育app Life settled at HK$26.95, rising 4.66 percent.
Analysts attributed the rally mainly to the reshuffle of investors' portfolio and "window decoration" for fund managers.
Castor Pang, strategist of Sung Hung Kai Financial Group, said the flow of capital from the A-share market significantly pushed up the index. "Mainland capital began to veer to banking and finance-related shares in Hong Kong via QDII (qualified domestic institutional investors)."
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