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Hong Kong: Stocks up for 7th straight month, buoyed by resource firms
[HONG KONG] Hong Kong stocks closed at a 25-month high on Monday after completing a seventh-straight month of gains, powered by strength in dual-listed resource firms which forecast rises in first-half earnings.
The Hang Seng index rose 1.3 per cent, to 27,323.99, while the China Enterprises Index gained 0.7 per cent, to 10,827.84 points.
For the month, HSI was up 6.1 per cent, while HSCE gained 4.5 per cent.
Strong inflows from mainland investors via the stock connect program linking Hong Kong and the mainland helped contribute to the rally in Hong Kong stocks, market participants said.
Data showed southbound traffic through the stock connects remained strong in July, with dual-listed firms preferred as their names are more familiar to mainland investors.
Sectors rallied across the board on Monday.
An index of major material firms rose 4.5 per cent as those shares tracked their mainland peers, with such counters expected to benefit from China's continued supply-side reforms and a weaker US dollar.
China Shenhua, dual-listed in Shanghai and Hong Kong, gained 3.7 per cent, after the country's largest coal producer said it expected a big rise in first-half profit.
Chinese internet conglomerate Tencent rose 2.8 per cent to a record high, bolstering the information technology sector, which rose 2.3 per cent.