TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 132

The securities, gold and commodity markets

3.15

The stock market was relatively quiet during the

first half of this year, with prices drifting lower on

balance. The total value of turnover was 57% less than in the

first half and 49% less than in the second half of 1981. The

Hang Seng Index moved within а range of 320 points, compared with ranges of 485 and 696 points respectively for the two previous six-month periods.

3.16

After having fluctuated between 370 and 1 450 in

quiet trading in January and in early February, the Hang Seng Index fell sharply and almost continuously to 1 125 in early March, largely as a result of the continued high level of US

interest rates, fears about recession and the uncertainties of

the domestic property market. Encouraged by the improved

performance of the main

of the main overseas stock markets, by an easing of domestic money rates and particularly by increased activity

in corporate acquisitions and mergers, the stock market

regained strength in the following two months. The index rose

increasingly active trading to reach 1 414 on 26th May.

The rise was subsequently followed by a period of weakness,

with the index falling to 1 267 in late June, amid uncertainty

about the direction of future US interest rates. At the end

of June the index stood at 1 279, 9% below the end-December

1981 level of 1 406.

in

3.17

The total volume of equity capital raised on the

stock exchanges (excluding the exercise of

convertible shares) was $848.7 million in the

warrants or

first half of

raised by way

the year.

Out of the total, $389.8 million was

of new issues of shares offered to the public and million by way of rights issues.

$458.9

26

/ 3.18 The