Hong Kong shares close morning higher on futures-related short covering
HONG KONG (AFX-ASIA) - Share prices closed the morning slightly higher on late trade short covering, as investors started squaring their futures positions ahead of next week's expiry of the Hang Seng March contract,dealers said. The Hang Seng index closed up 19.68 points at 12,641.53, off an early low of 12,396.97 and a high of 12,699.14, on turnover of 6.65 bln hkd. The Hang Seng March contract last traded at 12,673 points. The Hang Seng China Enterprises index closed up 1.52 points at 384.72 and the CAC index up 9.45 points to 1,024.73. TraHK closed up 0.10 at 12.90 hkd on volume of 10.45 mln units. The GEM index closed up 0.19 points at 261.05 on turnover of 48.35 mln hkd. Kitty Chan, associate director with Lippo Securities, said the late trade buying was futures-related ahead of the expiry of the Hang Seng March contract next week. "The rebound is technical. In the next few trading sessions, we may see support from futures led buying," Chan said. However, an analyst with a regional brokerage said he is not very optimistic. "It is too early to say whether volatility among U.S. stocks will end soon. Concerns about a U.S. economic slowdown still haunt the market," the analyst said. Despite the late morning buying, HSBC remained weak, reflecting the decline seen in its share price during London trading, dealers said. They said the market is concerned that new fees and charges the bank plans to introduce will scare off smaller depositors. HSBC closed down 1.50 hkd at 89.25 on volume of 12.46 mln shares. However, Hang Seng Bank rose 2.75 to 88.50 and Bank of East Asia gained 0.20 to 17.90. Chan said bargain hunting even gave a lift to Hutchison Whampoa, which has been on the receiving end of negative comments since it reported lower than expected 2000 earnings. Hutchison Whampoa rose 1.50 to 81.75, while Pacific Century CyberWorks fell 0.025 to 3.575. Price war concerns continued to weigh on China Mobile shares, which fell 0.40 to 33.80. China Unicom added 0.25 to 8.95. Among the stocks which staged a technical rebound, Wharf rose 1.00 to 19.30 and Johnson Electric gained 0.60 to 12.10. New World Development added 0.40 to 9.95, Sun Hung Kai Properties rose 1.50 to 73.25 and Swire Pacific gained 1.30 to 49.00. Henderson Land rose 0.50 to 38.90 after its six months to December results. Cheung Kong closed down 0.25 at 82.00. Led by a rebound in Legend, the red chip sector reversed early losses, dealers said. Legend rose 0.20 to 5.35, Shougang Concord Technology added 0.02 to 0.285 and China Pharmaceutical gained 0.05 to 0.81. On the GEM board, tom.com fell 0.01 to 1.99 and Sunevision shed 0.125 to 2.075.
Related stock : (NIL)