Tuesday, August 3, 2010

HK stocks at 3-month high, Shanghai slips

HONG KONG: Hong Kong stocks rose to a three-month closing high on Tuesday, Aug 3 as HSBC Holdings Plc's forecast-beating half-year earnings pushed investors back to riskier assets such as emerging market equities.

The benchmark Hang Seng Index ended the session up 0.21 percent or 44.87 points at 21,457.66, its strongest close since April 26. The China Enterprise Index of top locally listed mainland companies was up 0.5 percent at 12,120.83.

HSBC gained 1.8 percent to finish at HK$82.50.

In Shanghai, China's key stock index ended 1.7 percent lower on Tuesday, easing off a two-and-a-half month high, weighed down by concerns over more capital raising.

The Shanghai Composite Index ended at 2,627 points, reversing a 1.3 percent rise on Monday. The index has risen about 11 percent over the last month.

Analysts said share market volume had picked up and Tuesday's fall could be temporary.

"Funds are continuing to flow into the market so the uptrend is not finished for now," said Cheng Yi, an analyst at Xiangcai Securities in Shanghai.

Medium-sized Chinese brokerage GF Securities said on Tuesday it planned to raise up to 18 billion yuan ($2.65 billion) in a private share placement to help it expand core businesses including underwriting share issues.

Turnover in Shanghai A shares increased to 130 billion yuan ($19.19 billion) from 110 billion yuan on Monday. - Reuters

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