March 30th, 2010  - by Najam

HONG KONG: Hong Kong stocks closed up 0.88 percent on Monday, helped by strong corporate earnings in China and news that a stock index futures market will open on the mainland soon.The benchmark Hang Seng Index gained 184.32 points to 21,237.43. Turnover was 54.59 billion Hong Kong dollars (7.03 billion US).China said Friday it would launch long-awaited stock index futures on April 16, in a bid to provide more sophisticated investment options for investors.The index futures will reference the CSI 300 Index, which comprises 300 yuan-denominated A shares listed on the Shanghai and Shenzhen stock exchanges.
Trading company Li & Fung rose 3.6 percent to 38.50 Hong Kong dollars on bargain hunting after falling 11.0 percent in the previous two sessions. Bank of Communications gained 1.2 percent to 8.73 and ICBC was up 0.9 percent at 5.75. China Construction Bank rose 1.0 percent to 6.15 after issuing 2009 results in line with expectations. Chinese stocks closed up 2.09 percent with banks and energy stocks leading the gains, dealers said.The Shanghai Composite Index, which covers both A and B shares, was up 64.08 points at 3,123.80 on turnover of 155.2 billion yuan (22.7 billion dollars).
It was the index’s highest closing level since it hit 3,128.59 on January 22.”I think the rise in the stock index has just started. Recent consolidation has built a bottom for the index and the index futures news has given investors a reason to buy,” Guoyuan Securities analyst Simon Wang said.Banks led the gains on bargain hunting. Industrial Bank surged 6.5 percent to 37.15 yuan and Bank of China climbed 3.1 percent to 4.36 yuan.Oil majors also advanced after Sinopec said its net profit more than doubled in 2009 due to strong demand and high refined oil prices in the domestic market.PetroChina rose 1.3 percent to 12.93 yuan, while Sinopec added 1.8 percent to 12.00 yuan.

Source: News Agencies