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HK stocks end at record high on tech-buying frenzy

HONG KONG: Hong Kong's benchmark Hang Seng Index soared 473.52 points or 2.74 percent to a record close on Monday at 17,758.76 as tech stocks surged in a Wall Street-inspired rally.

"The Nasdaq was a big influence, and sentiment for technology and telecoms is just good," said Jack Tsui, research analyst at China Everbright Research. The index last hit a record close on February 11 at 17,380.30. On Monday, total market turnover was a hefty HK$20.9 billion compared with Friday's HK$16.9 billion.

Strong blue chip support came from heavyweight China Telecom (Hong Kong) which jumped 3.9 percent to HK$79.00 after hitting a new high of HK$80.00 on heavy institutional buying.

Property tycoon Li Ka-shing's Cheung Kong (Holdings) and subsidiary Hutchison Whampoa rose 5.4 percent and 4.4 percent after prices fell last week.

Analysts said the market was beginning to perceive the merger between non-index Internet firm Pacific Century CyberWorks controlled by Li's son Richard, and blue chip Cable & Wireless as positive for big index stocks. "After the merger, it appears that the heavyweight Cheung Kong group of companies really strengthened," said Tsui.

Brokers said the market had been speculating would sell C&W HKT's mobile operations to the elder Li's Hutchison.

leaped 6.6 percent to HK$23.35 and added 4.6 percent to HK$24.80 after spending most of last week range-bound at the HK$22.00 level.

Analysts said a 3.37 percent rise in the tech-heavy Nasdaq on Friday to a record of 4,914.79 fired up local interest in Internet-related stocks.

Another Li Ka-shing counter, Web portal tom.com, was the most active stock, rising 41.2 percent to HK$12.00 on its fourth day of trade with turnover of HK$2.0 billion.It has increased 580 percent from its offer price of HK$1.78. Tom.com began trading on the Growth Enterprise Market second board on Wednesday.

"It has a strong name behind it and it is an Internet stock," said Antony Mak, sales director at Vickers Ballas, citing reasons for its sharp rise.

Strong buying in China's largest personal computer maker Legend Holdings drove it up 26.2 percent to HK$62.75 and sparked a rally in red chips and second tier tech plays.

The Hang Seng China-affiliated Corporations index jumped 12.00 percent to 1,682.82. Chinese software developer Founder (Hong Kong) vaulted 25.2 percent to HK$8.95.

Underperforming the market were bank and finance shares.

Blue chip Holdings eased 0.57 percent to HK$86.75 on turnover of HK$1.05 billion as investors switched out of the interest rate-sensitive counter into China Telecom and other tech plays, brokers said.-Reuters