Sept. 21 (Bloomberg) -- Most Hong Kong stocks rose, lifting the benchmark index to the highest close in more than five months, as developers gained after Sun Hung Kai Properties Ltd. reported higher profit.
Sun Hung Kai, the world’s biggest developer by market value, climbed 0.7 percent. Sino Land Co., the Hong Kong developer controlled by billionaire Robert Ng, climbed 2.3 percent. Hengdeli Holdings Ltd. slumped 6 percent after the retail partner of Swatch Group AG in China said it plans to sell convertible bonds. China Telecom Corp. dropped 3.5 percent after reporting slowing growth in new customers.
The Hang Seng Index rose 0.1 percent to 22,002.59, the highest close since April 15, after falling as much as 0.1 percent and gaining as much as 0.6 percent. Markets will be closed Sept. 23 for the Mid-Autumn Festival.
“We favor developers in the long run, given Hong Kong’s economy relies on two main pillars: real estate and finance,” said Steve Tse, a research manager at BEA Union Investment Management. “The 22,000 level is a key psychological barrier to break. Given there will be a holiday this week, that’s also holding investors back a bit and contributing to the volatility.”
Seventeen stocks advanced for every 12 that fell in the broader Hang Seng Composite Index. The Hang Seng China Enterprises Index of so-called H shares of Chinese companies gained 0.2 percent to 12,193.31.
Shares also gained after Lennar Corp., the third-biggest U.S. homebuilder, announced better-than-estimated earnings, boosting confidence in a global economic recovery. The Hang Seng Index has climbed 16 percent from its low for the year on May 25 amid optimism the U.S. economy will avoid falling back into a recession and that China will ease monetary policy to spur growth.
Stocks on the gauge trade at an average 14.2 times estimated profit, compared with 12.5 times on May 25.
Sun Hung Kai rose 0.7 percent to HK$123, extending its gains in the past seven days to 6.9 percent. The developer said full-year underlying profit rose 12 percent to HK$13.9 billion ($1.8 billion) after rental income from its offices and shopping malls increased.
Sino Land climbed 2.3 percent to HK$15.40. Cheung Kong (Holdings) Ltd., controlled by billionaire Li Ka-shing, advanced 2.3 percent to HK$109.20. The Hang Seng Property Index’s 0.7 percent gain was the biggest among the four industries tracked by the Hang Seng Index.
Hengdeli plunged 6 percent to HK$3.77, the largest decline among the 320 members of the Hang Seng Composite Index. The HK$2.5 billion in debt the retailer is selling will be due in 2015, or can be converted into shares if the stock reaches HK$4.9524, Hengdeli said. The capital raising is the second for Hengdeli this month.
Intime, China Telecom
Intime Department Store (Group) Co., a Chinese retail chain partly owned by Warburg Pincus LLC, fell 3.7 percent to HK$10.02 after saying it plans to sell HK$1.94 billion of convertible bonds.
China Telecom, the country’s biggest fixed-line phone carrier, fell 3.5 percent to HK$4.13. The company said it added 2.6 million mobile-phone users in August, compared with 2.8 million the previous month. That was the smallest monthly gain since August 2009, according to data on the carrier’s website.
Metallurgical Corp. of China Ltd. surged 8.2 percent to HK$3.98, the biggest jump on the H-share index, after trading resumed. A Metallurgical-controlled venture agreed to pay 20 billion yuan ($2.99 billion) for two building sites in Nanjing, China, according to stock exchange filings.
Yeebo (International Holdings) Ltd., which manufactures liquid-crystal displays, soared 24 percent to HK$1.34, after rallying as much as 81 percent. Trading resumed from a two-day suspension.
Twenty-two stocks advanced and 21 fell on the 45-member Hang Seng Index. Futures on the gauge climbed 0.5 percent to 22,060.
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