Hong Kong shares up

HONG KONG. — Hong Kong shares rose 0,48 percent yesterday as bargain hunters moved in following recent losses while dealers await a US Federal Reserve meeting this week. The benchmark Hang Seng Index added 103,81 points to 21 953,96 on turnover of US$5,76 billion. Confidence was also helped by reports that China’s central bank was injecting US$2,7 billion into the country’s banking systems.
Bank shares — which have suffered rough trading over the past four weeks — initially rallied on the news, though gains later eased.
Bank of China closed 0,6 percent higher at HK$3,26 after trading up as much as 1,5 percent. Bank of Communications closed up 0,2 percent at HK$5,05, also well off its session high.

“The unexpected liquidity expansion was a positive shock but we don’t think this is the People’s Bank of China changing to an injection or ease stance,” Gavin Parry, managing director of Parry International Trading, told Dow Jones Newswires.

“In fact, given they offered this small amount out at a relatively high level tells us the cheap cash days are gone.”
There were sharp drops for coal companies after Yanzhou Coal announced on Monday it expects to post a loss for the first half of 2013, rather than the 75 percent profit decline it had originally forecast amid falling coal prices.

Yanzhou Coal shares dropped 9,3 percent to HK$5,26, weighing on the sector. China Coal shares fell 4,9 percent to HK$4,07 and China Shenhua fell 1,1 percent to HK$22,80.

Chinese shares closed up 0,70 percent. The benchmark Shanghai Composite Index rose 13,75 points to 1 990,06 on turnover of 66,2 billion yuan.
Analysts said the cash injection from China’s central bank helped sentiment, but concerns over the domestic economy may remain a drag.

“The market is likely to keep consolidating with a downward bias in the month ahead given continued slowing of the Chinese economy,” Soochow Securities analyst Deng Wenyuan told Dow Jones Newswires.

Small loan firm Sunny Loan Top surged by its 10 percent daily limit to 8,47 yuan, while Everbright Securities gained 2,86 percent to 10,79 yuan.
Coal miners and metal producers also posted gains. Datong Coal Industry jumped 3,86 percent to 5,92 yuan while Shanxi Coal International Energy rose 2,46 percent to 11,23 yuan.

Baotou Steel Rare-Earth advanced 3,43 percent to 24,12 yuan and Xiamen Tungsten gained 3.21 percent to 28,34 yuan. — AFP.