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03/10/10

HK, China stocks mixed; Cathay, CITIC Pacific jump (E)

Hong Kong shares...
Category: Index News
Posted by: aline
Hong Kong shares ended flat on Wednesday, barely in positive territory after three straight sessions of gains and as investors took a breather after recent strength. Mainland stocks slipped on worries over possible monetary tightening. Forecast-beating results from Cathay Pacific Airways and CITIC Pacific lent support. The city's dominant air carrier Cathay Pacific rose 4.68 percent to HK$15.20, its highest close since July 2008, after reporting its best half-year results in two years. CITIC Pacific rose 7.47 percent, its biggest single-day gain in percentage terms in four months, to a seven-week closing high at HK$18.98. The steel-to-property conglomerate said it returned to the black in 2009 with a profit of HK$5.95 billion, beating a forecast of HK$5.08 billion. The benchmark Hang Seng Index ended up 0.74 points at 21,208.29. The China Enterprises Index of top locally listed mainland Chinese stocks ended up 0.06 percent at 12,217.33. Turnover fell to HK$55.15 billion ($7.12 billion) from Tuesday's HK$58.49 billion.

China's key stock index slid 0.66 percent on Wednesday, with property and auto shares weak amid concerns over possible monetary tightening ahead of inflation data due later this week, while the government released upbeat trade data. The Shanghai Composite Index ended at 3,048.927 points, after rising 0.52 percent on Tuesday. The index has been confined to a 3,000 to 3,100 point range for nearly two weeks, weighed down by worries that the authorities, who are already reining in credit, will tighten monetary policy further.

Economists expect China's February CPI to rise 2.3 percent from a year earlier, according to the median forecast in a Reuters survey, although analysts on Wednesday noted rising concern that the data could exceed expectations, especially after strong trade figures. China's top banking regulator said, however, that the country was very unlikely to suffer serious inflation this year.