3.12
The exchange rate
late in September when the
came under considerable pressure
market was beset by rumours and
Kong.
This weakness
anxieties about the future of Hong
continued into October when, in often volatile conditions, the
effective exchange rate index fell to below 80 and the rate
against the US dollar nearly touched $7.00. Subsequently there were signs of more settled conditions.
The securities, gold and commodities markets
3.13
The stock
the
market was weak in the first half of
third quarter, but managed to recoup part of its earlier
losses in the early part of September. The Hang Seng Index,
after rising from 1 279 at the end of June to 1 313 in
mid-July, fell sharply and almost continuously to reach 937 on
16th August. The fall mainly reflected increasing anxiety
over the political future of Hong Kong and over the depressed
state of both the domestic and overseas economies.
Improvements in overseas stock markets and declining interest
rates
led to a recovery, bringing the index back to
to 1 122 on
22nd September. For the remainder of the month, however, shares prices fell again; and this continued into October. At the end of September the Hang Seng index stood at 927, a fall
of 28% over the three months. The total value of turnover
16% less than in the second quarter.
3.14
was
the
The total volume of equity capital raised on
stock exchanges (excluding the exercise of warrants or convertible shares) was $143 million in the third quarter of
this year.
Out of the total, $11 million was raised by way of new issues of shares offered to the public and $132 million by
way of rights issues.
3.15
The loco London gold market was quiet in July and in the early part of August, with the price fluctuating largely between US$310 and US$360 per fine ounce. The price then rose
/ sharply,
17
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