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HK stocks end sharply up on China Telecom

HONG KONG: Hong Kong stocks ended sharply higher on Friday but off peaks as Cable & Wireless rebounded after a week in negative territory and added to strong blue chip support from China Telecom (Hong Kong).

The rally was broad-based, with Chinese computer maker Legend Holdings leading red chips higher and Pacific Century CyberWorks fuelling non-index technology plays.

The benchmark Hang Seng Index climbed 348.43 points or 2.06 percent to end at 17,285.24.Total market turnover was HK$16.9 billion compared with on Thursday's HK$16.3 billion, and advances beat declines 420 to 296.

"We had a bad shakeout in the market last week, so people were obviously cautious this week and watching Wall Street very carefully, but it seems today sentiment turned much better," said Howard Gorges, director at South China Brokerage.

Jumped 6.5 percent or HK$1.45 to finish at HK$23.70 in heavy trade after spending much of the week at the HK$22.00 level after announcing its merger with which was up 5.8 percent or HK$1.20 at HK$21.90.

"That takeover situation is settling down very well with good buying interest in both stocks," Gorges said.Blue chip heavyweight China Telecom rose 4.11 percent or HK$3.00 to end at HK$76.00, up 9.7 percent on the week on growing institutional demand for telecoms stocks, analysts said.

SmarTone Telecommunications Holdings climbed 10.1 percent to HK$34.90 as investors saw it as a bargain compared to a higher offer price expected for rival mobile phone service operator Sunday.

"With the exception of the finance sector, everything is green," said James So, director of research at Asia Financial Securities. "The fact that the index is able to do that without is really something," he added.

Li Ka-shing's Cheung Kong (Holdings) and Hutchison Whampoa rose on bargain-hunting while heavyweight HSBC Holdings eased 0.85 percent to HK$87.25. The Hang Seng finance sub-index lost 0.70 percent to 17,807.57 with interest rate concerns weighing on the stocks, analysts said.In the broader market, Legend Holdings ended nearly 10.0 percent higher but far off a 31.6 percent rise to HK$59.50 earlier in the day on euphoria over an exclusive deal to become the PC hardware supplier for PCCW's China broadband service.

Legend helped boost the red chip Hang Seng China-affiliated Corporations index, which climbed 6.18 percent or 87.43 points to 1,502.54. H shares rose 2.76 percent to 330.42.

Li Ka-shing's Web portal tom.com ended at HK$8.50 or 377.5 percent higher than its initial offer price on turnover of HK$583 million. It debuted on the Growth Enterprise Market second board on Wednesday.-Reuters