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HK stocks end at record close on talk

HONG KONG: Hong Kong stocks ended at a record close on Friday as speculation over a possible competing bid for Cable & Wireless HKT overshadowed interest rate hike concerns.

The Hang Seng Index ended up 535.13 points at 17,380.30 points, beating the last record close of 17,369.63 reached on January 3.During a hectic, fluctuating day of very heavy turnover, the Hang Seng jumped as high as 17,653.65. Over the holiday-shortened four-day trading week, the blue-chip index has jumped 8.8 percent and is now up 2.47 percent since the start of this year.

led the index up on Friday before trading in its shares were suspended, rising as high as HK$22.45 on reports that Hutchison Whampoa Ltd and its parent Cheung Kong Holdings were attempting to arrange a consortium to take control of the telecoms carrier.Internet company Pacific Century CyberWorks Ltd (PCCW) then said on Friday it was considering investing in raising the spectre of a bidding war with Singapore Telecommunications Ltd which is already involved in merger talks.

finished the morning up 22.6 percent or HK$4.00 at HK$21.65, whose shares were also suspended in the afternoon session at the company's request, ended the morning up 5.34 percent or HK$1.25 at HK$24.65.Investors were concerned about the political implications of a Sing Tel and deal, but they were encouraged to hear that PCCW might buy into the telecoms carrier, said Y.K. Chan, research director at Century City Securities Ltd.

"The HongKong Telecom-PCCW deal does make sense," said ABN AMRO Securities trader Mary Beth McNamara.

While Hutchison and Cheung Kong denied any interest in acquiring, both companies hit record highs.

Hutchison closed up 8.39 percent or HK$11.00 at HK$142.00 after hitting HK$144.00, while its parent Cheung Kong jumped 7.14 percent or HK$8.00 to HK$120.00. It earlier hit HK$123.50. Joining in the telecom-buoyed euphoria, China Telecom (Hong Kong) Ltd hit a record high of HK$70.75 before closing up 5.86 percent or HK$3.75 at HK$67.75.Looking ahead, analysts said there was a lot of liquidity and funds coming into the market, and the market could be hitting more record highs in the next two or three weeks.-Reuters