Hong Kong Stocks Advance to 10-Month High as Casinos GainJonathan Burgos and Kana Nishizawa
Hong Kong stocks rose, with the benchmark index closing at its highest since January, as casino shares gained and cement makers climbed on higher prices.
Anhui Conch Cement Co., China’s biggest maker of the building material, rose 3.1 percent. Galaxy Entertainment Group Ltd., the Macau casino operator controlled by billionaire Lui Che-woo, advanced 1.8 percent. Skyworth Digital Holdings Ltd. jumped 8.6 percent after brokerages including Nomura Holdings Inc. raised the television maker’s target price.
The Hang Seng Index rose 0.5 percent to 23,806.35, its highest close since Jan. 30. About twice as many shares gained as declined on the 50-member gauge. The Hang Seng China Enterprises Index, also known as the H-share index, climbed 0.9 percent to 11,401.96. The measure surged last week after China unveiled a sweeping policy shift.
“Investors are waiting for additional catalysts from China,” said Jackson Wong, vice president of Tanrich Securities in Hong Kong. “The reforms are positive for the longer term but execution will be the key in the short term.”
The Hang Seng Index advanced 20 percent from this year’s low on June 24 on signs of economic recovery in China. Shares on the gauge traded at 11.41 times estimated earnings, compared with 16.28 on the Standard & Poor’s 500 Index yesterday. The H-share index, which climbed 29 percent from this year’s low on June 25, was valued at 8.4 times estimates earnings.
Futures on the U.S. equity gauge climbed 0.1 percent today. The gauge rose less than 1 point yesterday after rising as much as 0.3 percent. The Conference Board’s consumer confidence index fell to 70.4 in November from a revised 72.4 in October, which was stronger than initially estimated. The median forecast in a Bloomberg survey of 78 economists called for a reading of 72.6.
Anhui Conch gained 3.1 percent to HK$29.90. China National Building Material Co., the nation’s second-biggest cement maker, rose 3.2 percent to HK$8.74. Cement prices increased 0.5 percent last week across China, with gains further boosting fourth-quarter profitability for makers of the material in eastern China, Sun Hung Kai Financial Ltd. wrote in a note dated yesterday.
Galaxy rose 1.8 percent to HK$60.85. Sands China Ltd., a unit of billionaire Sheldon Adelson’s Las Vegas gaming company, advanced 1.9 percent to HK$58.15.
Skyworth Digital surged 8.6 percent to HK$4.55. Nomura raised the television maker’s 12-month price target to HK$6.40 from HK$6, while BOCOM International Holdings Co. increased its projection to HK$5 from HK$4.90. Skyworth yesterday jumped 8 percent and today capping its biggest two-day gain since October 2011 after its first-half profit rose.
Futures on the Hang Seng Index rose 0.4 percent to 23,818. The Hang Seng Volatility Index declined 1 percent to 15.83, indicating traders expect the benchmark equity index to swing 4.5 percent in the next 30 days.