(For Shanghai stock market reports, click [.SS])
(Adds Friday lunch close, details)
By Rita Chang
HONG KONG, Feb 1 (Reuters) - Hong Kong stocks rose on Friday,
as gains on Wall Street prompted investors to pick up shares such
as mainland lenders and insurers that were knocked down in a
two-day sell-off.
But rate-sensitive Hong Kong property developers slid after
local banks lowered their prime rates by 25 basis points,
compared to the half-percentage point rate reduction by the Hong
Kong Monetary Authority.
Blue chips veered into negative terrain at one point as
property shares were hit, while tumbling Chinese domestic stock
markets also weighed.
"We're just taking cues from overseas markets right now, but
the weak mainland market will limit our upside," said Ben Kwong,
chief operating officer at KGI Asia Ltd.
"Basically we're headed for further consolidation."
The benchmark Hang Seng Index .HSI had risen 0.8 percent to
23,653.00 by lunch. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, ended the
morning up 2.8 percent at 12,835.70.
Mainboard turnover was HK$57.7 billion (US$7.4 billion),
compared to Thursday morning's HK$61.9 billion.
Among advancing mainland lenders, Bank of Communications
(3328.HK) leapt nearly 5 percent to HK$9.07 and Industrial &
Commercial Bank of China (1398.HK) scurried up 5.4 percent to
HK$4.88.
Top Chinese life underwriter China Life (2628.HK), the
morning's most active stock, gained 1.3 percent to HK$28.35.
Among property shares, Sun Hung Kai Properties (0016.HK) slid
3 percent to HK$148 and Cheung Kong (Holdings) Ltd (0001.HK)
slumped 2.3 percent to HK$122.8. Sino Land (0083.HK) tumbled 7.5
percent to HK$21.75.
But mainland property shares recovered sharply.
China Overseas (0688.HK), the morning's top blue chip gainer,
shot up 12.6 percent to HK$14.82. Agile Property (3383.HK) ended
the morning up 8.8 percent at HK$9.37.
Computer maker Lenovo Group Ltd (0992.HK) and fashion
retailer Esprit Holdings Ltd (0330.HK) vaulted further in heavy
trade after surprising the market with better-than-expected
earnings. Lenovo rose 5.8 percent to HK$5.68 and Esprit climbed
nearly 2 percent to HK$102.7.
Other gainers included shipping plays which advanced further
on expectations the Baltic Dry Index .BADI, an indicator for
commodity-freight rates, would reverse its recent downtrend,
having fallen sharply off its all-time peak set last year.
Dry bulk shipper Pacific Basin (2343.HK) led with a 8.8
percent gain to HK$11.92 in heavy trade. China COSCO (1919.HK)
vaulted nearly 7 percent to HK$18.88. China Shipping Development
(1138.HK) leapt 6 percent to HK$21.
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)
