STOCKWATCH: Hong Kong property stocks higher on technical rebound

HONG KONG (AFX-ASIA) - Property shares outperformed the market this morning on a technical rebound, but their upswing is seen as temporary because of the lack of leads in the property market recently, dealers said.	    At 11:53 am, the property sub-index was up 311.78 points at 16,938.56	    The Hang Seng Index was up 166.88 points at 12,750.24.	    Roger Luk, an analyst with G K Goh Securities, said property stocks rebounded technically from their recent stiff losses, but there was not an improvement in their fundamentals.	    "Investors have discounted the impact of interest rate reduction, and their confidence has been weathered by the unstable performance on Wall Street and in Hong Kong," he said.	    He said homebuyers had turned cautious since the budget speech from Financial Secretary Donald Tsang, who did not propose new prop-up measures for the local property market.	    Luk said property shares are likely to be flat in the near term, subject to the performance of Wall Street and the prospect of further U.S. interest rate reduction in the next couple months.	    "On average, prices for property stocks have fallen 20 pct recently. They should be flat in the short term," he said.	    Cheung Kong was up 0.50 at 81.0, New World Development rose 0.50 to 10.20, Henderson Land was 0.70 higher at 38.80, Sun Hung Kai Properties gained 2.75 to 75.50, and Wharf Holdings added 0.85 to 19.85. 

Related stock : (NIL)