3.11
Against the US dollar the Hong Kong dollar
eased
more noticeably, reflecting the general firmness of the US
currency. From HK$6.515=US$1 at the end of 1982, the Hong Kong dollar had weakened to $6.73 by the end of March, a depreciation of 3.2%. The rate weakened further in the early part of the second quarter.
The securities and gold markets
3.12
The stock market was more active in the first
quarter of this year than in the previous three months, and share prices more than recovered the ground lost in the last quarter of 1982. The Hang Seng index rose strongly from 766
on 3rd January to 1 066 on 25th February. The rally was
allegedly brought about by overseas institutions buying on the
belief that
that local stocks were undervalued and that the Hong Kong dollar was weak and might recover, and on encouragement from the performance of stock markets elsewhere. However, the
gains faded somewhat in the middle of March, partly in
response to some poor corporate results. The index fell back
to 955 on 21st March before closing the month at 996, 27.0%
higher than at the end of 1982. Daily turnover on the four
exchanges rose substantially, reaching the peak of $489
million on 25th February, the highest level in more than nine
months. Turnover for the quarter as a whole, at $12,141
million, was 28% higher than in the last quarter of 1982.
3.13
London gold market was active in
price fluctuated widely. From
December 1982, the price rose
Trading in the loco
the first quarter, and the
US$455 an ounce on 31st
continuously to reach US$507 on 3rd February, influenced by anticipation of declines
declines in US interest rates. There was,
however, heavy and nervous selling in late February, seemingly in response to developments surrounding the price of crude oil. The gold price fell to US$405.5 on 1st March and closed
at US$414 at
at the end of March, 9% lower
9%
than at the end of
1982.
19
/3.14 The