HONGKONG STOCK MARKET, June 14 - 17, 1988
fore profit takers moved in to trim the early gains.
Brokers said that investors who had bought up scrip around the 2,500-point level had decided to unload if in the afternoon, but the current buying trend was expected
to continue for the near future.
Some correction was expected in the following few days but it was not predicted to stop the cautious bull in its tracks and brokers were hoping that the 2,700-point level would become the next support level.
By the close of play, the Hang Seng Index was just below 2,700 points as it came to rest at 2,699.58, up 26.88 points.
The Hongkong Index also opened on a strong footing but profit-takers pushed the day's gains down to 16.73 points to close at 1,787.05.
By lunch, total turnover was well beyond the $HK1- billion mark and by the end of trading, the final tally came to $HK1.89 billion, up $HK294.82 million from the previ- ous close.
On the corporate front, the plan sponsored by Hongkong's publicly-listed Hang Lung Development Company Ltd, to put Australia-based Parry Corporation on the road to recovery, was approved by shareholders of
Parry.
Hang Lung is Parry's major shareholder, and the plan included a proposed increase of Hang Lung's holding in Parry from 20 percent to 33 percent, a proposed increase in authorised capital, a rights issue and an issue of unse- cured convertible notes and options to Hang Lung.
If Hang Lung converts its options and notes before the end of June 1993, it would increase its stake in Parry to 52
percent.
Shipping company Samaha Investments Company Ltd also revealed a plan in the hope of making the company buoyant again after nearly 2 years of suspension.
Samaha aimed to spend $HK113 million to purchase 8 ship-owning companies and 2 property investment compa- nies, a number of which are already associated with Samaha's major shareholders.
Wormald Pacific Ltd announced a one-for-4 bonus share issue which, if accepted by the shareholders of the
company, would change the price of existing warrants to subscribe for shares in the company from $HK3 to $HK2.40.
There were reports that Elders Investment Ltd, an Elders IXL subsidiary, was to become involved in a major redevelopment project in Australia.
Elders Investment was unfortunate enough to choose October 19, 1987 as its first day of trading on the Hongkong Stock Exchange.
The reports said that Elders had formed a partnership with Australia-based Hudson Conway Company Ltd for the $A300-million (about $HK1.9 billion) project in Mel- bourne.
In Japan, investors cautiously pushed the Nikkei Stock Average up 31.72 points to 28,093.53, but analysts believed that good news from Wall Street would boost sentiment in the Japanese Market.
In New World Tower, the spot month was still ahead of the Hang Seng Index, at a premium of 18 points, which indicated to analysts that the Stock Market still had some upward movement left.
The spot month of June closed at 2,718, up 11 points, the month of July closed at 2,722, up 19 points, and the far month of August finished at 2,723, up 19 points.
Major news included:
(a) Bank of China, the Mainland's specialist foreign ex- change bank, recorded record Net Profits for the pre- vious Year following the country's growth in economy and foreign trade;
(b) In the first 5 months of this year, the Chinese Govern- ment approved 1,526 foreign-backed ventures increas- ing the flow of overseas capital by $US1.6 billion (about $HK12.48 billion); and,
(c) Mr Lu Ping, Deputy Director of the Hongkong and Macau Affairs Office under the Chinese State Council, said while he was visiting the Territory that foreign business leaders would not have to surrender their overseas passports to become permanent residents of Hongkong after 1997.
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