HONGKONG STOCK MARKET, June 20-24, 1988
cent cut in the price of a barrel of crude oil because of a plentiful supply of oil on world markets; and, (c) Following an increase in cases of bribery and corrup- tion among Chinese officials, the Chinese Government
announced plans to clamp down on corrupt officials, especially in state trade and company offices in Hongkong and other foreign countries.
Wednesday
The local Stock Market was happy to see a good performance from Wall Street and the Hang Seng Index scored about 35 points before confidence was eroded by news from Japan.
The Dow Jones Industrial Average rose more than 25 points in heavy trading in New York where investors were cheered by the news that the US Price Consumer Index for the month of May had increased only 0.3 percent.
Analysts had anticipated that the consumer index would increase between 0.5 percent and 0.6 percent and so on the back of this favourable news, the Dow closed up
at 2,109.17.
In Hongkong, investors reacted positively in the morn- ing session, with confidence boosted by the optimism shown across the Pacific.
Japan's Market also reacted positively and the Nikkei Stock Average had climbed about 275 points by lunch- time. During the afternoon, however, the tide changed dramatically and the Nikkei Stock Average plummeted more than 300 points.
Local investors became a little jittery around the 2,720-point level on the Hang Seng Index and buying of scrip was less evident, but after the news from Japan had reached Exchange Square, the profit-takers moved in in force.
By the close of play, the Hang Seng Index had man- aged a gain of 20.09 points and came to rest at 2,703.74. The Hongkong Index was up 22.11 points at one stage, but the gains were carved down to 13.48 points and the Index closed at 1,790.51.
There was some overseas interest reported during the afternoon which brokers said helped boost total turnover by $HK122 million to $HK1.45 billion.
Overall, positive sentiment was said to be holding out but the re-emergence of a certain amount of volatility in
the Market obviously affected some punters.
It appeared that the Hongkong Market was back to following events from overseas rather than following the beat of its own drummer, which it had been doing in the previous few weeks.
Several brokers predicted that further consolidation would be the name of the game before the 2,700-point barrier could be firmly broken and new, post-Crash highs
reached.
The 2,600-point level was expected to provide the sup- port needed to prevent the Hang Seng Index from slip- ping too far if Wall Street failed to maintain its present position and dropped back.
On the last day of his visit to Hongkong, the British Secretary of State for Trade and Industry, Lord Young, said that the Territory is still an attractive Market for British businessmen.
British industry views Hongkong's future up to and beyond 1997 as a continuation of the present challenges and opportunities, said Lord Young.
Despite some uncertainty after the Crash in October, there is still confidence in Hongkong and Lord Young said that he would like to see more British firms coming to the Territory.
The acquisition of Asia Television Ltd by Thomond Investments Ltd was being investigated by the Office for The Commissioner of Securities, to see whether or not the take-over of the television station, the major asset of ATV Holdings Ltd, constituted the purchase of the parent
company.
The interests of minority shareholders. were also an
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