Hong Kong shares close up 0.4 pct, but falter again at chart resistance

HONG KONG Mon Jan 28, 2013 8:09am GMT

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HONG KONG Jan 28 (Reuters) - Hong Kong shares eked out a first gain in four days - but failed again at a chart level that capped index gains last week - as strength in the Chinese banking sector offset weakness in Hong Kong property counters.

The Hang Seng Index closed up 0.4 percent at 23,671.9 on Monday, failing again at chart resistance at about 23,708, its peak on May 31, 2011. The China Enterprises Index of the top Chinese listings in Hong Kong rose 0.8 percent.

The CSI300 of the top Shanghai and Shenzhen A-share listings closed up 3.1 percent at 2,651.9. The Shanghai Composite Index climbed 2.4 percent. Monday's gains were their best daily showing since Jan. 14.

HIGHLIGHTS:

* Mid-sized Chinese banks led gains in the sector after Pan Gongsheng, a deputy governor of China's central bank, said that the pace and timing of freeing interest rates must consider banks' profitability and capability of replenishing capital, as the two factors affect credit supply to the whole economy. China Minsheng Bank jumped 3.1 percent, while "Big Four" rival China Construction Bank rose 0.6 percent.

* Investors also cheered a plan to double the number of A-share listings eligible for short selling or margin trading, bolstering shares of Chinese brokerages. Haitong Securities climbed 3.7 percent.

* China Cosco Holdings dived 5.1 percent after the world's largest bulk cargo fleet operator said it expects a second-straight year of losses in 2012. Its Shanghai listing faces the prospect of delisting if the company does not turn a profit in 2013.

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Comments (1)
Trader_101x wrote:
Assuming that not all players in the stock market are sheep, does anyone else not think it strange that stocks have risen in a manner one would associate with the herd mentality algorithmic trading systems? May I remind you that a “bubble” is caused by a dramatic and rapid increase in asset prices, usually driven by speculation. Just recently we discovered that despite Britain being on the road to growth, and I quote the government “it’s all OK, nothing to worry about”, the economy has shrunk in q4 2012. The unemployment figures could not have fallen to new lows if the economy shrank in q4, therefore the UK government has been misleading us. Now should we extend this line of thought to Europe, which we can (Europe is further down the road to destruction than Britain), we are sitting on a stock market time bomb, consisting of over valued and over priced stocks. Taking into account the US debt talks due in a few weeks, and the picture starts to look not so much grim as pitch black.

Jan 28, 2013 8:42am GMT  --  Report as abuse
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