HONGKONG STOCK MARKET, June 14-17, 1988
the spot month was up 4 points to 2,722, the month of July was down 4 points to 2,718 and the far month of August was down 3 points at 2,720.
Futures brokers were a little miffed at reports that Mr Ian Hay Davison had said that Hongkong did not require a futures market to remain a financial centre.
Major news included:
(a) Japan and the US were heading for another row over currency rates, but they had traded their positions:
This time, the Japanese said that they would prefer a weaker U.S. dollar whereas the Yanks preferred a stronger currency,
(b) A report published by the Hongkong Unit Trust Asso- ciation reported that Australian equity funds were the top performing funds for the 3 months ending in May; and,
(c) English is to remain the official language in Hongkong after the Territory reverts to Chinese rule, said senior Chinese official Mr Lu Ping.
Friday
Punters appeared to have ignored the 37.16-point drop on the Dow Jones Industrial Average in New York the night before, as the local Market, in line with other Asian Markets, continued to forge ahead.
Brokers were again delighted by the continued high volumes, indicative of the continued presence of overseas investors, according to several commentators.
Local institutions remained active and continued to
buy and sell stocks selectively.
The Utilities Sub-Index led the sectorial gains, up 42.86 points to close at 3,780.20.
Several brokers commented that this was indicative of
a general move by punters to diversify their holdings out of the property sector, which some believed was coming to its peak after a run.
The initial reaction of the Hang Seng Index to the news from New York was a negative one, but by mid- morning the Index had started a steady recovery.
By the close of play, the main barometer had risen 24.52 points to stand at 2,718.02, closing above the 2,700- point level for the first time this year.
Turnover remained relatively high as it increased $HK274 million to $HK1.7 billion, ‘an encouraging sign in a rising Market', according to brokers.
The Hongkong and Yaumatei Ferry Company Ltd topped the most active stocks list after its Placement of Shares, which was designed to raise about $HK116 mil-
lion.
Rumour had it that the cash would be used to rede- velop a shipyard in Taikoktsui in Kowloon.
The only other gossip going around the floor was speculation that there would be an announcement ema- nating from Mr Deacon Chiu's office at ATV Holdings Ltd.
Some brokers expected that a take-over bid, pitched at $HK2.50 per share, would be announced, with a local ty- coon as the buyer of the longest-running television station in Hongkong.
Names which had been bandied about in previous ses- sions were said to be members of the Lam Family, of Lai Sun fame, and Mr Cheng Yu Tung of New World Devel- opment Company Ltd.
The speculation pushed ATV's share price up 17.5 cents to stand at $HK2.375.
Mr Li Ka Shing's stable remained in the top 5 most
active stocks.
Hutchison Whampoa Ltd was reported to be flogging off another 3 blocks of the Whampoa Gardens develop-
ment.
It was said that the queue for the sale of one block at
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