HSI hits new one-month highBusiness | Reuters and Esther Yu Jan 12, 2017
The benchmark Hang Seng index headed for a fifth winning session, up 0.8 percent, to 22,935 points. An accumulated rise of more than 800 points, or 3.6 percent, has been seen over the past five trading days.
Nearly all sectors in Hong Kong advanced, led by resource stocks, underpinned by strong commodities prices and the promise of supply-side reform in the mainland. The sector was up around 2.4 percent at midday.
The property sector was also favoured, sending Cheung Kong Property (1113) up 2.4 percent and Sun Hung Kai Properties (0016) up one percent.
New World (0017) and Sino Land (0083) were up 2.9 and 3.2 percent respectively. JP Morgan published a report forecasting a short-term rebound for local property stocks given the better-than-expected pricing for new homes.
A rate hike would not pose high risk at the moment, it said.
Most sectors lost ground in the mainland market. Transportation stocks, down 1.47 percent, were largely dragged lower by airlines succumbing to profit-taking.
China Southern Airlines (1055) fell more than 3.2 percent after adding nearly 7.4 percent in the previous session on investor optimism over possible restructuring.
Looking ahead, Credit Suisse believes the optimism can be sustained, setting 24,500 points as the target level for the HSI, favoring the old economies over technology and medical stocks.
Investment on infrastructure is also expected to grow in the mainland, it said, in order to support the country's GDP growth target.