The Business Times

Hong Kong: Stocks at 3-1/2-month high on Trump tax talk and China inflows

Published Fri, Feb 10, 2017 · 08:28 AM

[HONG KONG] Hong Kong stocks closed at a 3-1/2-month high on Friday, with support from Wall Street's gains on promises of tax cuts and capital inflows from the mainland.

The benchmark Hang Seng index added 0.2 per cent, to 23,574.98 points, while the Hong Kong China Enterprises Index gained 0.5 per cent, to 10,125.21 points.

The main index added 1.9 per cent this week.

Sentiment was lifted after Wall Street's three main indexes notched record highs on Thursday as President Donald Trump said he would make a major tax announcement within weeks, though he gave no details.

The market was also supported by rising southbound inflows through the Shanghai-Hong Kong Stock Connect, which used 24 per cent of Friday's daily quota, compared with an average of less than 11 per cent in January.

Investors largely shrugged off China's better-than-expected trade data in January.

The energy sector rose 1.3 per cent, with a boost from heavyweights PetroChina Co Ltd and China Shenhua Energy Co Ltd.

Resources stocks erased early losses and inched up 0.2 per cent at the close as commodity prices picked up in the afternoon.

Property developers touched a three-month high but then slipped, dropping 0.3 per cent.


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