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HK scrips

moderately

firmer

HONG KONG: Stocks closed moderately firmer, blessed by a combination of positive factors, dealers said.

The blue chip Hang Seng Index climbed 72.50 points or 0.80 percent to end at 9,152.89.

Brokers said the market had been boosted by Moody's assigning of above-average financial strength ratings to Hongkong Bank and Hang Seng Bank, speculative buying ahead of August index futures' expiry on Wednesday, a recent spate of strong corporate earnings reports, a more optimistic outlook for the property market and improving Sino-U.S. relations.

"It's a combination of small factors all adding up," said Nial Gooding, sales director at Kleinwort Benson.

There was "a little bit of good solid, value-driven buying going on" across the board, he added.

But brokers said activity was slim. Preliminary turnover was HK$2.40 billion, versus Friday's adjusted HK$2.72 billion.

"Trade was very slow," said Antony Mak, sales director at Vickers Ballas.

August index futures traded at a premium at 9,182 on a volume of 8,550 lots.

The broad All Ordinaries Index put on 18.30 points to 4,455.56.

Mainland China companies listed here underperformed the main market, with their index posting a 3.71 percent fall.

Banking was the firmest sector among blue chips after Moody's assigned both Hongkong Bank and Hang Seng Bank "B" financial strength ratings, above the average for U.S. and Japanese banks.

HSBC, the parent of both banks, jumped HK$1.50 to HK$104.50 while Hang Seng Bank rose 50 cents to HK$63.-Reuter