1/29/2012 8:18 PM ET
(RTTNews) - The Hong Kong stock market has moved higher now in six consecutive trading days, surging more than 1,460 points or 7 percent along the way. The Hang Seng Index finished just above the 20,500-point plateau, although now analysts are forecasting a round of profit-taking at the opening of trade on Monday.
The global forecast for the Asian markets suggests a mild withdrawal following uninspired gross domestic product figures from the United States and lingering debt concerns from Europe. Some of the regional bourses are ripe for profit-taking, adding to the cautious sentiment while prompting support for gold as a safe haven. The European markets finished lower on Friday and the U.S. bourses were mixed but little changed - and the Asian markets are also expected to slide.
The Hang Seng finished modestly higher on Friday as gains from the retailers and telecoms were offset by softness from the property stocks.
For the day, the index collected 62.53 points or 0.31 percent to finish at 20,501.67 after trading between 20,384.05 and 20,590.80 on volume of 58.51 billion Hong Kong dollars.
Among the gainers, China Merchants Holdings climbed 3.5 percent, while Li & Fung jumped 3.4 percent, Esprit Holdings spiked 3.4 percent, Power Assets added 2.3 percent, China Mobile collected 1.9 percent and CLP Holdings rose 0.9 percent.
Moving lower, China Overseas shed 3.4 percent, while China Resources Land fell 2.1 percent and China Life eased 0.9 percent.
Wall Street puts forth little guidance as stocks were lackluster on Friday with traders digesting weaker than expected U.S. economic growth in the final three months of last year.
Before the start of trading, the Commerce Department said GDP increased at an annual rate of 2.8 percent in the fourth quarter compared to the 1.8 percent growth seen in the third quarter - but shy of expectations for an increase of 3.1 percent. Economists were also disappointed that much of the GDP growth in the fourth quarter was due to a positive contribution from private inventory investment.
However, Reuters and the University of Michigan said their consumer sentiment index for January was upwardly revised to a reading of 75.0 from the mid-month reading of 74.0, coming in well above the final December reading of 69.9. The revised reading also marked an eleven-month high for the consumer sentiment index, which is at its best level since coming in at 77.5 last February.
Among individual stocks, auto giant Ford (F) fell by 4.2 percent after reporting weaker than expected fourth quarter earnings due to weakness overseas. Procter & Gamble (PG) also ended the day in the red after the consumer products giant reported a sharp drop in fourth quarter earnings and lowered its full-year earnings guidance.
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