HONGKONG STOCK MARKET, June 14 - 17, 1988
predicted that the Hang Seng Index would reach the 2,700-point level some time the following day.
of
Allied Kajima, the newly formed company made up Allied Properties (Hongkong) Ltd and Kajima Corpora- tion of Japan, was negotiating with 2 Japanese parties with a view to unloading the company's stake in a yet-to- be-built hotel in Gloucester Road, Wanchai.
Mr Paul Ng, Chief Executive of Allied Properties, said that the Directors of Allied Kajima, himself included, hoped to list the company in Hongkong in the near future.
Shun Tak Enterprises Corporation Ltd, driven by ca- sino tycoon Dr Stanley Ho, paid about $US2 million (about $HK15.6 million) for a second hand boat to be used on the new 22-hour ferry service between Taiwan
and Macau.
Dr Ho said that Shun Tak would purchase 2 or 3 more
vessels to service the route.
In Japan, the Market staged a recovery after falling more than 100 points during the morning session.
It seemed that the Japanese were determined to keep the Nikkei Stock Average above the 28,000-point barrier,
and the Average finally closed at 28,051.8, up 25.26 points. On the Hang Seng Index Futures, the month of June closed at a 35-point premium to the Hang Seng Index, which boosted confidence in the Stock Market further.
The spot month was up 24 points to 2,707, the month of July was up 25 points to 2,703 and the more distant month of August closed at 2,705, up 25 points.
Major news included:
(a) Japan's Net International Capital Surplus will almost triple in the next 7 years, from $US240 billion (about $HK1,872 billion) to $US650 billion (about $HK5,070 billion), according to a survey conducted by Moody's Investor Service in New York;
(b) A stock exchange was set up in Tianjin, a city in north- east China, to deal in equity and bond transactions. The exchange is a subsidiary of the Bank of China; and (c) The Hongkong Government started screening Viet- namese refugees, and those considered to be economic migrants were to be put in closed camps until they could be returned to Vietnam.
Wednesday
Following the release of the US trade figures, which revealed an unexpected, continued fall in the US trade deficit, the Hang Seng Index, boosted by the overnight close in Wall Street, reached a post-Crash high.
The Dow Jones Industrial Average closed at 2,124.47, up 25.07 points, reflecting the world-wide approval of the US trade figures.
The deficit confirmed that imports were continuing to fall in relation to exports and that the US economy was finding firmer ground to stand on.
Local investors who have been supporting the local Market for the last few days took advantage of the preva- lent bullish atmosphere to unload some of their stocks, in particular scrip in second and third-liners.
On the other hand, many overseas institutions were buying up blue chips which were considered to be under-
valued.
The result of the furious buying and selling was an- other record turnover figure for this year.
A number of local fund managers were noticed picking up blue chips also, but brokers said that more foreign in- vestors would be needed to keep the ball rolling.
Without doubt, sentiment amongst investors had revi- talized since the previous month's US trade figures which were also considered to be favourable but which sparked a drop in both the US and Hongkong Markets.
The Hang Seng Index scored 48 points at one stage during the morning session, breaking the 2,720 level, be-
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