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Hang Seng index reaches record high

By Lillian Liu (China Daily)
Updated: 2007-05-08 09:08

The Hang Seng Index passed the record 21,000-point mark yesterday, driven by hopes mainland investors would fuel another market run after the holiday.

The Hang Seng Index ended the morning up 195.89 points or 0.94 percent, to 21,036.97, but dropped slightly in afternoon trading to close at 20,896.64. The previous intraday record was 20,971.46 on January 24.

Shares of PetroChina Co Ltd skyrocketed after the company announced it found the country's largest oilfield in the last 10 years at Bohai Bay.

A man walks past a display of the Hang Seng Index in Hong Kong yesterday. Shares closed up 55.56 points to a record 20,896.64, driven by hopes that mainland investors would fuel another market run.

China's leading oil producer estimates the reserve could provide a total of 2.2 billion barrels of oil, with a possible daily output of 200,800 barrels within three years.

PetroChina shares increased 3.5 percent to HK$10.52 yesterday.

Shares of Anhui Conch Cement Co Ltd, China's top cement maker, surged nearly 10 percent to HK$34.35 in trading yesterday. In late April the company said it expected 2007 earnings to rise 10 percent after it issued $520 million worth of A-class shares to buy assets from its parent company and Anhui Conch Venture Investment.

China Overseas Land and Investment Ltd surged 5.8 percent to HK$11, near its all-time high, as investors bet the country's top developer would become a new member of the Hang Seng Index.

China Mobile, the country's largest mobile carrier and a heavyweight on the Hang Seng Index, gained HK$0.55 to HK$72.9, while China Construction Bank jumped 1.5 percent to HK$4.97.

Dealers said investors were already in a positive mood after the market's record close on Friday, supported by gains on Wall Street last week. Investors expect the mainland market to play catch-up and post robust gains when it resumes trading today.

"Overall sentiment is positive after another record close on Wall Street last Friday. Investors were confident that there will be more gains to come from global markets," said Castor Pang, a strategist at Hong Kong-based Sun Hung Kai Financial Group.

A local government land auction has also fueled optimism for gains in property stocks.

The government will auction a plot of land in a reclamation area in Kowloon. Some analysts expect the 8,060-square-meter site to fetch up to HK$4 billion and should draw the interest of major developers.