Hong Kong Stocks Rise, Capping Longest Win Streak in Six MonthsKana Nishizawa
Hong Kong stocks rose, with the benchmark index capping its longest winning streak in six months, after homes sales gained in the U.S. and as mining companies rebounded. The city’s markets will be closed tomorrow.
Aluminum Corp. of China Ltd., the nation’s No. 1 supplier of the light metal by market value, increased 1.7 percent and Cnooc Ltd., China’s biggest offshore oil producer, climbed 1 percent after commodity prices advanced yesterday. Techtronic Industries Co., a power-tool maker that counts North America as its largest market, added 1.8 percent. Sands China Ltd., the Asian unit of billionaire Sheldon Adelson’s Las Vegas company, sank 3.8 percent, falling for a second day.
The Hang Seng Index climbed 0.7 percent to 22,737.01 at the close, with almost six stocks climbing for each that retreated. The index gained for a fifth straight day, its longest streak since Oct. 25, with trading volume 6.2 percent less than the 30-day intraday average, according to data compiled by Bloomberg.
“There’s improving fund flow, negative factors are factored in and investors are now looking for opportunity for the market to reach the upside,” said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd. in Hong Kong. “The A-share market remains closed, so we are taking positive clues from the overseas market.”
The Hang Seng China Enterprises Index of mainland companies traded in the city advanced 1.2 percent to 10,917.97, erasing yesterday’s loss. China’s equity markets are closed through May 1 for public holidays, while Hong Kong will be shut tomorrow.
The Hang Seng Index declined 5.2 percent from a Jan. 30 high through yesterday as data from China signaled a slowdown in the world’s second-largest economy, and amid concern the outbreak of a new bird-flu virus will spread. Year-to-date, Hong Kong’s benchmark index is the second-worst performer among developed markets.
The measure traded at 10.8 times estimated earnings yesterday, compared with a five-year average of 12.7 and the Standard & Poor’s 500 Index’s multiple of 14.5, according to data compiled by Bloomberg.
Futures on the Standard & Poor’s 500 Index dropped 0.1 percent today. The measure rose 0.7 percent to a record yesterday as pending sales of homes climbed 1.5 percent in March amid optimism central banks will maintain stimulus plans. Economists forecast a 1 percent increase, according to the median estimate in a Bloomberg survey.
Techtronic climbed 1.8 percent to HK$18.54, while AAC Technologies Holdings Inc., an acoustic components maker that gets more than half its revenue from the U.S., added 1.1 percent to HK$37.85.
Aluminum Corp. of China advanced 1.7 percent to HK$2.93, while Jiangxi Copper Co., the country’s biggest producer of the metal, climbed 0.8 percent to HK$15.04, paring its steepest monthly retreat in a year. Cnooc rose 1 percent to HK$14.48.
West Texas Intermediate oil for June delivery advanced 1.6 percent in New York yesterday, while the London Metal Exchange Index of industrial metals increased 1.4 percent.
Esprit Holdings Ltd., a Hong Kong-based apparel seller that posted a wider-than-estimated first-half loss, advanced 3.4 percent to HK$10.88, its biggest two-day advance since Nov. 16, after UBS AG raised its rating to buy from neutral on improved prospects of turnaround.
Mongolia Investment Group Ltd., a water-services and mining company, jumped 7.8 percent after resuming trading today. The company said it will buy effective control of a Chinese digital-mapping provider for HK$1.5 billion ($193 million) more than a year after first announcing the deal.
Sands China slid 3.8 percent to HK$40.70, the steepest decline in the Hang Seng Index. The company yesterday snapped its longest winning streak since July 2011. Its parent Las Vegas Sands Corp. is scheduled to announce its first-quarter earnings on May 1.
Hang Seng Index futures climbed 0.4 percent to 22,604. The HSI Volatility Index slid 4 percent to 15.42, indicating traders expect a swing of 4.4 percent for the equity benchmark in the next 30 days.