Want Want, Tingyi Shares Rise on Addition to Hang Seng Index
Want Want China Holdings Ltd. (151) and Tingyi Cayman Islands Holding Corp. (322), respectively China’s biggest producer of rice cakes and largest packaged-food maker, climbed in Hong Kong trading after Hang Seng Indexes Co. said they will be added to the city’s benchmark.
Want Want rose 6.1 percent, the most since May 26, 2010, to HK$7.44. Tingyi, which agreed this month to become PepsiCo Inc.’s bottler in China, gained 4.3 percent to HK$21.80.
Shares of companies that are added to or removed from the Hang Seng Index tend to move as funds that track the benchmark, such as the Hang Seng Index Exchange-Traded Fund, adjust their holdings. The number of index members will rise to 48 from 46 with the changes, Hang Seng Indexes said when announcing the results of a review of the index.
The index inclusion may “trigger some accumulations from exchange-tracked funds,” Christina Lie, a Hong-Kong based analyst at First Shanghai Securities, said by telephone today. “The outlook on the food and beverages sector as a whole is attractive as we expect to see margins improvement next year.”
Spending at shops and restaurants over China’s so-called Golden Week, a seven-day national holiday, rose 17.5 percent from a year earlier to 696.2 billion yuan ($110 billion), the Ministry of Commerce said in results of a survey published on its website Oct. 7.
Today’s advance boosted Want Want’s gain this year to 9.3 percent, compared with a 15 percent drop for the Hang Seng Index. (HSI)
Tingyi, whose chairman and chief executive officer is Taiwanese billionaire Wei Ing-chou, has added 9.6 percent this year. Third-quarter profit fell 35 percent as prices for raw materials rose and colder weather hurt beverage sales, it said in a filing today.
The stocks will be added to the Hang Seng Index on Dec. 5, the compiler said Nov. 11 after the market’s close.
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