HONG KONG (XFN-ASIA) - Share prices are expected to open higher led by China telecom firms on hopes Beijing will soon issue 3G mobile phone licenses to the mainland's three leading telecom firms.
Dealers said resources counters may help support the market on the US dollar's weakness against major currencies. Trade will remain light, however, amid a lack of fresh market incentives and as many traders are still away for the holidays.
On Wednesday, the Hang Seng index closed up 151.98 points in a half-day session or 1.07 pct at 14,387.48, off a low of 14,302.15 and high of 14,527.10. Turnover was 19.47 bln hkd.
The index shed 13,425.17 points or 48.3 pct last year, marking the biggest annual percentage drop since 1974, when the benchmark tumbled 60 pct amid a global oil crisis.
'I expect the market to open higher led by China telecom firms on hopes that Beijing's issuance of 3G licenses may be imminent,' said Dennis Poon, research head at South China Securities.
China's State Council, or cabinet, said this week it has approved the long-awaited licenses for third generation mobile phone technology. China Mobile gained a license using the domestically developed TD-SCDMA standard.
Poon said resource counters could help provide additional support to the market.
'Most people expect the US dollar to extend its weakness against major currencies, and this could enhance the attraction of commodities and encourage buying of resources counters,' he said.
(1 usd = 7.8 hkd)
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