Hong Kong shares close morning higher on Wall St gains, U.S. consumer data

HONG KONG (AFX-ASIA) - Share prices closed the morning higher as buying resumed on Wall Street overnight rebound after better than expected U.S. March consumer confidence data pointing to an improvement in the economic outlook, dealers said.	    They said investors rushed to square their short positions, encouraged by the positive signs from Wall Street and the U.S. economic indicators, buying into index heavyweights, in particular China Mobile, HSBC, Cheung Kong and Hutchison Whampoa.	    The Hang Seng index closed up 234.81 points at 12,942.71, off an early low of 12,813.95 and off an early high of 13,015.73, on turnover of 4.12 bln hkd. 	    The Hang Seng March contract last traded at 12,970 points.	    The Hang Seng China Enterprises index was up 6.63 points at 394.20 and the CAC index was up 9.04 points at 1,044.23.	    TraHK was up 0.25 at 13.10 hkd on volume of 3.68 mln units.	    The GEM index was down 0.81 points at 258.73 on turnover of 60.84 mln hkd.	    MTR Corp was up 0.35 at 12.80 hkd.	    Bruce Ruffy, head of sales with Dresdner Kleinwort Wasserstein Securities, said there was no doubt that Wall Street's gains and the U.S. consumer confidence data prompted the local buying.	    Dealers said investors who previously stayed on the sidelines rushed to close out their short positions.	    They said the short covering was concentrated in majors such as China Mobile, Cheung Kong, HSBC and Hutchison Whampoa to effectively push the index higher.	    China Mobile rose 1.50 to 35.50 hkd on volume of 10.08 mln shares, further supported by NASDAQ's firmness overnight and news that the company is seeking to acquire 18 mobile phone networks from its parent.	    Cheung Kong added 1.50 to 80.25 on of 4.49 mln shares after chairman Li Ka-shing said the company proposes to enlarge its issued capital in preparation for future acquisitions.	    Huchison Whampoa rose 1.25 to 82.00.	    HSBC rose 2.00 to 92.50 and Hang Seng Bank gained 0.25 to 91.00.	    However, Ruffy said it remains to be seen if the worst in the U.S. is over.	    "The March consumer confidence data were just for one month and further evidence is needed ... I do not rule out the possibility of further volatility in U.S. stocks," Ruffy said.	     Dao Heng Bank economist Daniel Chan said he still expects the U.S. Federal Reserve to continue its interest rate reduction cycle.	     Dealers said with expectations of further interest rate cuts, the property sector staged a strong rebound this morning.	    Sun Hung Kai Properties gained 1,75 to 74.50, New World Development added 0.05 to 10.20 and Sino Land rose 0.075 to 3.50.	    Henderson Land rose 0.60 to 39.60 after the company said it plans to increase its completed projects by 81 pct to 2.7 mln square feet in the year to June 2002 to boost earnings.	    In the telecom sector, China Mobile gained 1.50 to 35.50 and China Unicom added 0.25 to 8.85.	    Pacific Century CyberWorks fell 0.05 to 3.45 ahead of results.	    On the GEM board, tom.com fell 0.01 to 1.99 and Sunevision lost 0.025 to 2.125.	    Dealers said upbeat sentiment about the profitability of Chinese state-owned enterprises encouraged buying in H shares.	    Shenyang Public Utility rose 0.09 to 1.44, Anhui Expressway added 0.05 to 0.89 and Jilin Chemical gained 0.03 to 0.56. 	    Shanghai Industrial rose 0.15 to 12.75 after the Hong Kong Economic Times reported the company is studying the feasibility of taking a stake in a computer chip project in Shanghai.	    China Resources added 0.10 to 10.70. 

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