China Shipping Container Lines share up 10.6 percent
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Hong Kong shares rose 0.5 percent on Friday as hopes for a U.S. recovery were bolstered by more encouraging data, but profit taking pressure following the previous session's rally slowed the main index's advance.
Among the big gainers, China Shipping Container Lines (CSCL)soared 10.6 percent to HK$1.77 after Goldman Sachs upgraded the stock to a buy rating, from sell, on expectations that global cargo trade will stabilise.
Goldman Sachs has a target price of HK$2 on the stock.
The brokerage house also revised its view on the container shipping sector to neutral from cautious with the decline in freight rates slowing down and amid aggressive capacity cuts by shippers in an attempt to offset weak demand.
Another container shipper Orient Overseas (International) vaulted 12.1 percent to HK$23.55.The benchmark Hang Seng Index .HSI ended the morning session 73.79 points higher at 14,595.76 after hitting a three-month high in the previous session.
Other major markets in Asia also kept the rally alive on Friday after world leaders at the G20 summit in London clinched a $1.1 trillion dollar deal to combat the economic crisis.
"We are back to where we started the year. We had the same kind of optimism towards China's stimulus package and Obama's presidency," said Ben Kwong, COO with KGI Asia.
But caution crept in ahead of key U.S. payrolls data later on Friday.
"Watch out for anti-climax selling, as the market appears to be running out of positive news to further sustain the strong rally," warned Taifook Securities analyst Wilson Wong.
Turnover jumped to HK$41.4 billion from HK$39.84 billion by midday on Thursday as institutional investors increased their exposure to local stocks.
Shares in exchange operator Hong Kong Exchanges & Clearing bulked up 6.3 percent, leading gains on the blue chip index, after turnover rose to a three-month high in the previous session.
HSBC which surged 15.3 percent on Thursday edged up 0.6 percent after U.S. regulators okayed changes to the mark-to-market accounting rules which has shaken financial institutions with hefty write-downs.
BOC Hong Kong , which has been on an upswing since its parent Bank of China said earlier this week it would increase its holding in the lender, added another 3.1 percent.Local property stocks made a strong showing with top developer Sun Hung Kai Properties rising 2.1 percent and Henderson Land tacking on 4.8 percent after government data showed the value of home sales rose nearly 87 percent in March.
The China Enterprises Index .HSCE of top mainland firms was up 0.2 percent at 8,590.77.
Gold miner Zijin Mining slumped 6.7 percent to HK$5.33 after the price of the precious metal dropped on Thursday on renewed talk of gold sales by the International Monetary Fund.
Gold prices dropped below $900 an ounce in the previous session but hovered over that level on Friday.
Tobacco and food flavouring producer Huabao International Holdings sank 12.8 percent to HK$6.08 after the company said a major shareholder would sell HK$1.16 billion (US$149.9 million) worth of its shares at a discount to third party investors.
Towngas China jumped 7.6 percent after it said it would sell its interest in Pana LPG to Panriver Investments for HK$414.2 million. The company said it was working to reduce its risk exposure to the LPG business amid unstable LPG prices, low profit margins and a low return on investment.
Among the big gainers, China Shipping Container Lines (CSCL)soared 10.6 percent to HK$1.77 after Goldman Sachs upgraded the stock to a buy rating, from sell, on expectations that global cargo trade will stabilise.
Goldman Sachs has a target price of HK$2 on the stock.
The brokerage house also revised its view on the container shipping sector to neutral from cautious with the decline in freight rates slowing down and amid aggressive capacity cuts by shippers in an attempt to offset weak demand.
Another container shipper Orient Overseas (International) vaulted 12.1 percent to HK$23.55.The benchmark Hang Seng Index .HSI ended the morning session 73.79 points higher at 14,595.76 after hitting a three-month high in the previous session.
Other major markets in Asia also kept the rally alive on Friday after world leaders at the G20 summit in London clinched a $1.1 trillion dollar deal to combat the economic crisis.
"We are back to where we started the year. We had the same kind of optimism towards China's stimulus package and Obama's presidency," said Ben Kwong, COO with KGI Asia.
But caution crept in ahead of key U.S. payrolls data later on Friday.
"Watch out for anti-climax selling, as the market appears to be running out of positive news to further sustain the strong rally," warned Taifook Securities analyst Wilson Wong.
Turnover jumped to HK$41.4 billion from HK$39.84 billion by midday on Thursday as institutional investors increased their exposure to local stocks.
Shares in exchange operator Hong Kong Exchanges & Clearing bulked up 6.3 percent, leading gains on the blue chip index, after turnover rose to a three-month high in the previous session.
HSBC which surged 15.3 percent on Thursday edged up 0.6 percent after U.S. regulators okayed changes to the mark-to-market accounting rules which has shaken financial institutions with hefty write-downs.
BOC Hong Kong , which has been on an upswing since its parent Bank of China said earlier this week it would increase its holding in the lender, added another 3.1 percent.Local property stocks made a strong showing with top developer Sun Hung Kai Properties rising 2.1 percent and Henderson Land tacking on 4.8 percent after government data showed the value of home sales rose nearly 87 percent in March.
The China Enterprises Index .HSCE of top mainland firms was up 0.2 percent at 8,590.77.
Gold miner Zijin Mining slumped 6.7 percent to HK$5.33 after the price of the precious metal dropped on Thursday on renewed talk of gold sales by the International Monetary Fund.
Gold prices dropped below $900 an ounce in the previous session but hovered over that level on Friday.
Tobacco and food flavouring producer Huabao International Holdings sank 12.8 percent to HK$6.08 after the company said a major shareholder would sell HK$1.16 billion (US$149.9 million) worth of its shares at a discount to third party investors.
Towngas China jumped 7.6 percent after it said it would sell its interest in Pana LPG to Panriver Investments for HK$414.2 million. The company said it was working to reduce its risk exposure to the LPG business amid unstable LPG prices, low profit margins and a low return on investment.