H.K. blue-chip Hang Seng Index rebounds 5.58%

Asian Economic News, Oct 2, 2000

HONG KONG, Sept. 25 Kyodo

Hong Kong's blue-chip Hang Seng Index soared 5.58%, or 816.07 points, to close at 15,428.95 on Monday.

Analysts said the sharp gain -- the largest this year in both points and percentage terms and the fourth largest in points since 1970 -- was largely technical following last week's heavy losses.

News that the United States is planning to use its oil reserves to push down oil prices, the recovery of the euro and Friday's gains by the Dow Jones Industrial Average also helped boost Hong Kong stock prices, they said.

The rise was led by telecommunications and banking shares. Telecommunication heavyweight China Mobile (Hong Kong) surged 10.17% to HK$52.00, while banking giant HSBC Holdings jumped 4.85% to HK$108.00.

Although most stocks gained Monday, trading volume was low with a turnover of HK$8.85 billion (US$1.14 billion).

Looking ahead, the Hong Kong stock market will remain volatile and may face pressure at the 15,000 level in the short term, analysts said.

Investors may take profits on Monday's gains, they said.