May 15 (Bloomberg) -- Hong Kong stocks rose, with the benchmark index posting its longest winning streak since January, as Tencent Holdings Ltd. surged after profit beat estimates. Developers retreated after yesterday’s rally.
Tencent, which had a stock split take effect today, jumped 5.8 percent to provide the biggest boost to the market. Kingsoft Corp. climbed 6.1 percent on an announcement it will be added to the MSCI China Index, while Shougang Fushan Resources Group Ltd., which will be removed, plunged. China Resources Land Ltd. fell 2.7 percent, leading declines on the Hang Seng Index after soaring yesterday on optimism the government will shore up the real estate market.
The Hang Seng Index rose 0.7 percent to close at 22,730.86 in Hong Kong for a sixth day of gains. The Hang Seng China Enterprises Index, also known as the H-share index, fell 0.2 percent to 9,971.24. The gauges reached the highest in three weeks yesterday amid speculation China will do more to support economic growth.
“The sustainability of the market depends on whether China will announce more stimulus measures,” said Louis Wong, a Hong Kong-based fund manager at Phillip Capital Management. “Investors are mildly bullish. Tencent could see upward revision of earnings.”
The Hang Seng Index lost 2.5 percent this year as concern about China’s economic slowdown weighed on investor sentiment. As of the close in Hong Kong, that’s the third-worst performance among major developed markets tracked by Bloomberg. The gauge traded at 10.6 times estimated earnings, compared with a multiple of 16 for the Standard & Poor’s 500 Index yesterday.
Tencent jumped 5.8 percent to HK$108.80 after first-quarter revenue surged from online games and advertising through its messaging services. Net income soared 60 percent to 6.46 billion yuan ($1 billion), compared with the 4.86 billion yuan average estimate of analysts surveyed by Bloomberg. A 5-1 stock split took effect for Asia’s biggest Internet company, aimed at boosting holdings by individuals. The closing price yesterday was HK$514.
Kingsoft rose 6.1 percent to HK$23.60 after MSCI Inc. said the software maker will be added to its China gauge effective May 30. Everbright Bank Co., China Huishan Dairy Holdings Co. and Shanghai Fosun Pharmaceutical (Group) Co. will also be included. Among companies that will be removed, Shougang Fushan Resources tumbled 9.8 percent to HK$2.21.
Anta Sports Products Ltd. surged 7.5 percent to HK$12.08. The maker of athletic shoes and apparel reported a low double-digit increase in fourth-quarter orders from trade fairs.
Chinese developers retreated after rallying yesterday amid optimism the government will take further steps to support the property market. The People’s Bank of China on May 13 told the nation’s biggest lenders to expedite mortgages. Industrial & Commercial Bank of China Ltd. will accelerate the approval process for home loans, according to a Xinhua report.
China Resources Land slipped 2.7 percent to HK$15.58 after soaring 6 percent yesterday. China Overseas Land & Investment Ltd., the biggest mainland developer traded in Hong Kong, fell 1.3 percent to HK$19.58. Shimao Property Holdings Ltd. lost 3.2 percent to HK$15.34.
Futures on the S&P 500 fell 0.1 percent after the underlying index fell from a record high as investors resumed selling off small-cap and Internet shares.
(An earlier version of the story was corrected to show the stock indexes jumped to a three-week high yesterday rather than the biggest gain in three weeks.)
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