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  • Feb 17th, 2005
  • Comments Off on Hong Kong stocks rise ahead of Greenspan testimony
Hong Kong blue chip stocks finished a touch higher on Wednesday as investors were reluctant to stake fresh positions ahead of comments from US Federal Reserve Chairman Alan Greenspan. Greenspan kicks off two days of intensely awaited testimony before Congress on Wednesday, and wary financial markets are awaiting clues to the pace of further US interest rate rises. "People are not too keen to chase the market ahead of Greenspan's speech," said Alex Wong, research director at Rexcapital Asset Management.

"We're also not seeing any trend in other markets, so basically it is pretty quiet." The benchmark Hang Seng index closed 0.14 percent, or 19.66 points, higher at 14,015.49, continuing to hover around the psychologically important 14,000 level after Monday's 1.24 percent rally.

Turnover at HK$17.1 billion ($2.2 billion) was slightly ahead of Tuesday's HK$15.4 billion.

Gains in global fashion retailer Esprit Holdings and index heavyweight HSBC Holdings were countered by losses in China's top offshore oil and gas producer, CNOOC Ltd, and property conglomerate Wheelock and Co Ltd.

Esprit put on 3.33 percent to HK$46.50, propelled by strength in the euro as the company makes most of its sales in euros, while HSBC edged 0.38 percent higher to HK$133 on optimism that it will post strong earnings results later in the month.

But CNOOC slipped 0.60 percent to HK$4.15 as oil prices ended a five-day rising streak overnight, while Wheelock, widely tipped to be dropped from the Hang Seng index the next time the index compiler makes a reshuffle, fell 3.66 percent to HK$11.85.

Also under pressure, Beijing-backed ports and shipping containers group Cosco Pacific Ltd shed 1.52 percent to HK$16.25, just two days after reaching a 7-1/2 year high of HK$17.65.

After the market closed, Standard Chartered reported a 39 percent rise in 2004 profit that met market expectations as revenue rose and bad debts fell sharply.

However, the bank warned of increasing pressure on profit margins in Hong Kong, its biggest market.

Among the bigger movers, Shenzhen Expressway Co Ltd jumped 7.56 percent to HK$3.20 after the firm agreed to buy a 56.28 percent stake and shareholders' loans in Guangdong Qinglian Highway Development Co Ltd for 1.84 billion yuan ($222 million) in cash.

Copyright Reuters, 2005


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