0907850729

Hong Kong's Hang Seng Index Rises to Record; Sun Hung Kai Gains
0907850729 Ngọc SG
By Hanny Wan
Nov. 22 (Bloomberg) -- Hong Kong's Hang Seng Index closed at a new high, after economic growth accelerated more than economists forecast. Property developer Sun Hung Kai Properties Ltd. and Hong Kong Exchanges & Clearing Ltd. gained.
``The growth mainly comes from the financial sector,'' said Wilfred Sit, who helps manage about $4 billion of Asian equities at Baring Asset Management (Asia) Ltd. in Hong Kong. ``If the economy continues to be strong, it certainly helps'' improve company earnings outlooks and boost market sentiment, he said.
Cnooc Ltd. rose after oil topped $60 a barrel in New York for the first time in 10 days and China Resources Enterprise Ltd. gained after reporting higher earnings.
The Hang Seng added 242.49, or 1.3 percent, to 19,250.79 at the 4 p.m. close in Hong Kong. The Hang Seng China Enterprises Index, which tracks the shares of 37 mainland companies, rose 3.4 percent to 8610.04, the highest since December 1993.
Sun Hung Kai, Hong Kong's biggest developer by market value, climbed HK$1.40, or 1.6 percent, to HK$90.70. Hong Kong Exchanges, operator of Asia's second-biggest stock market, gained HK$2.10, or 3.1 percent, to HK$70.40, the highest since its trading debut in June 2000.
Gross domestic product climbed 6.8 percent in the third quarter from a year earlier after expanding 5.5 percent in the previous three months, the government announced yesterday. That beat the 5.4 percent growth forecast by economists in a Bloomberg News survey.
Thirty one stocks on the 34-member Hang Seng Index advanced while three fell. The November futures rose 1.5 percent to 19,277.
Cnooc, PetroChina
Cnooc, China's biggest offshore oil producer, added 16 cents, or 2.4 percent, to HK$6.77. PetroChina Co., the nation's largest oil producer, jumped 46 cents, or 5.2 percent, to HK$9.39, its biggest gain since July 21, 2005. Citigroup Inc. initiated coverage on PetroChina with a ``buy'' rating, according to a research report published today.
``Energy stocks have the potential to perform well,'' Baring's Sit said. ``As winter approaches, it's peak season'' for energy consumption.
Crude oil futures advanced 2.3 percent to $60.17 a barrel in New York yesterday, the biggest gain since Oct. 25. The contract was recently at $60.06 in after-hours trading.
China Resources, a retailer and brewer backed by the Chinese government, rose 70 cents, or 3.5 percent, to HK$20.70. Profit in the three months ended Sept. 30 rose 4 percent from a year earlier to HK$629.8 million ($81 million) on increased earnings from retailing, food and beverage units, the company announced yesterday.
The following stocks also rose or fell.
Beijing Capital International Airport Co. (694 HK) gained 5 cents, or 1 percent, to HK$5.11. The operator of Asia's second- busiest airfield handled 16 percent more passengers in October than a year earlier because of China's rising travel demand. A total of 4.45 million travelers used the airport last month, Beijing Capital said in a statement.
Hutchison Whampoa Ltd. (13 HK), controlled by Hong Kong billionaire Li Ka-shing, climbed HK$2.75, or 3.8 percent, to HK$74.40, its highest since May 11. Hutchison has no intention of selling its third-generation, or 3G, mobile-phone business in Europe, said Euginie Kwok, a spokeswoman for Hutchison. Hutchison is in discussions to sell the 3G business, called ``3,'' in Europe to France Telecom SA's (FTE FP) Orange unit, Ming Pao newspaper reported today, citing people it didn't identify.
Link Real Estate Investment Trust (823 HK), which runs 180 parking garages and shopping malls previously owned by the city government, gained 22 cents, or 1.4 percent, to HK$16.50, its highest since Aug. 9. Link REIT proposed a dividend of 32.81 Hong Kong cents per unit as it benefited from rising rental income. The dividend was 6.3 percent higher than committed distribution on an annualized basis, the company said in a statement. Total income for distribution to shareholders for the six months ended September was HK$702 million.
New World Development Co. (17 HK), a Hong Kong developer that also invests in transport and telecommunications, gained 22 cents, or 1.5 percent, to HK$14.60, its highest since May 11. The company is planning to buy back the mobile-phone venture it formed with Telstra Corp.'s (TLS AU) Hong Kong unit, the Hong Kong Economic Journal reported. The transaction will give New World direct ownership of its mobile-phone and fixed-line units and make it easier for the company to sell the business ``at the right opportunity,'' the Hong Kong-based newspaper quoted New World Chairman Henry Cheng as saying. Telstra is Australia's biggest telephone company.
Zijin Mining Group Co. (2899 HK), which runs China's largest gold mine, climbed 21 cents, or 4.5 percent, to HK$4.93, the highest since its trading debut in December 2003. The company said it dropped a plan to buy 10 percent of Australia's Allied Gold Ltd. (ALD AU) because due diligence conditions weren't ``fully satisfied.'' Zijin has told Allied Gold, a gold explorer, that it won't proceed, it said in a statement, without giving more details.