26 January 2012

Hong Kong shares ended higher Thursday, boosted by the U.S. Federal Reserve\'s comments that it will keep interest rates low until at least late 2014.

The Hang Seng Index (HSI) advanced by 328.770points or +1.635% closing at 20,439.140. Throughout the day\'s trade, the HSI shifted between 20453.47 to 20301.59 points. Market volume totaled HK$60.84 billion, down from HK$65.96 billion on Friday, the last trading day before the market closed for the holidays celebrating the start of the "Dragon year."

Among the top volume traders of Hang Seng Index were CH FIN LEASING, BANK OF CHINA, ICBC, CCBand FREEMAN FIN; Among the Top gainers were SIBERIAN MINING, CEC INT\'L HOLD, HUILI RES, NORTH MININGand TIANGONG INT\'L. Among the top losers were CH FIN LEASING, HENGLI COMM PPT, WATER OASIS GPand TANRICH.

Hong Kong shares took cue from the U.S. central bank\'s Wednesday statement that it expects interest rates to stay at "exceptionally low levels" at least until late 2014. Previously, the Federal Reserve had said it expected the period of exceptionally low rates to last until mid-2013. Following the Fed\'s announcement, the Dow Jones Industrial Average rose 0.66% to close at 12758.85 points, its highest level since May 10, 2011.

In Hong Kong, financial firms and property developers were particularly receptive to the news of likely low interest rates in the U.S. New World Development, one of the worst-performing blue chips in 2011, ended up 5.4% at HK$8.54, and Sino Land jumped 4.8% to HK$13.08. China Life rose 4.3% to HK$23.10, and Bank of East Asia finished up 4.4% at HK$32.35.

Gold firms were also strong, with Zhaojin Gold rising 9.5% to HK$13.82, Lingbao Gold rising 9.8% to HK$3.48, and Zijin Mining gaining 5.6% to HK$3.58, as the stocks played catch up to the yellow metal\'s gain during the Lunar New Year holidays.

Bawang International sharply underperformed the market, slumping 11.6% to 99 HK cents, after the Chinese shampoo maker reported its sales fall to continue due to adverse media reports on its products.