HONGKONG STOCK MARKET, June 14 - 17, 1988
Thursday
As expected, the Hongkong Market consolidated after gaining 200 points in only a little more than 2 weeks, but brokers were ‘delighted' with the outlook of the near future.
One broker said that the consolidation should provide a strong platform from which the Hang Seng Index could make further headway in the following few weeks.
The overnight close in New York was not as high as the previous day or so despite the excitement generated by the release of the US trade figures.
The Dow Jones Industrial Average registered a gain of slightly less than 7 points overnight to close at 2,131.40.
The Hang Seng Index opened steady but fell about 14 points, due to local traders unloading scrip, before firming
later in the afternoon.
Overseas institutions were picking up blue-chips that they considered to be still undervalued as well as scrip that was being sold by local punters.
Despite narrow trading during the day, total turnover was kept relatively high due to the overseas cash hanging around to pick up bargains.
Overseas interest in the Hongkong Market had boosted local confidence, and although a little further consolidation was predicted, foreign buyers were expected to stick around.
The local Market had been kept alive over the previ- ous few weeks due to the support of local investors, espe- cially the larger institutions.
A number of analysts were hoping that this support would continue despite the return of overseas money, since the Market had recently begun to show signs of standing on its own 2 feet.
Naturally, the US trade figures had attracted a lot of attention, and Markets around the world were benefitting
from the renewed confidence in equity dealing.
But a number of brokers said that Wall Street might not be able to sustain its run for much longer and that it was essential for local institutions and investors to keep
the support in Hongkong. up
At the close of play, the Hang Seng Index had dropped 6.08 points to finish at 2,693.5; the Hongkong Index closed at 1,783.75, down 3.30 points.
Total turnover was down from the previous day by $HK46 million and the final tally came to $HK1.43 billion.
In the first 2 days of the week, the Hang Seng Index had risen more than 50 points and, in general, was ex- pected to continue its climb.
There was some concern, however, that a number of majority shareholders in locally listed companies were steadily, and in small quantities, unloading their share- holdings on to the Market.
Corporate news included the announcement by IHD Holdings Ltd of the sale of 10 floors of the 16-storey Intercontinental Plaza for $HK415 million.
Allied Properties (Hongkong) Ltd revealed that the company had reached an agreement with New World De- velopment Company Ltd whereby Allied Properties would purchase 2 apartment blocks in the Baguio Villas com- plex.
Comprising 60 apartment units plus carparks, the 2 blocks cost Allied Properties $HK202.5 million and will
be retained for rental income.
Citicorp International Ltd won its appeal against the Commissioner for Securities for rejecting the flotation of
RJP Electronics Ltd.
The Securities Commission ruled in favour of Citicorp, which had appealed, in December last year, against the Commissioner for Securities' rejection of RJP's applica- tion to be listed on The Stock Exchange of Hongkong Ltd on the grounds that it would not be in the public interest.
RJP was later listed through a public offer, in January. In Tokyo, the Gross National Product figures for the first 3 months of this year were released, showing an an- nualised GNP growth of 11 percent.
This was higher than expected and consequently, there were fears in Japan of higher inflation and increases in interest rates.
The Nikkei Stock Average ended the session up 53.80 points to 28,147.32.
There was some uncertainty in New World Tower as
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