Window dressing props up Asian stock markets

Window dressing props up Asian stock markets

HONG KONG (AFP): Most Asia-Pacific stock markets ended higher
Wednesday as institutional funds dressed up their portfolios in
the climax to a tempestuous 1997.

The markets in Tokyo, Seoul, Manila and Jakarta were closed.
Trading in Hong Kong, Singapore, Sydney and Auckland was
restricted to half-a-day on New Year's eve before the markets
closed for the New Year holiday.

Hong Kong share prices bucked the general uptrend with a 0.3-
percent loss as late profit-taking wiped out early gains posted
on the back of a stronger Wall Street.

"The current profit taking is quite natural as investors do
not expect the market will be strong enough to break resistance
around the 11,000-point level," said Steven Thompson, analyst
with Nikko Securities.

The key Hang Seng index lost 32.45 points, or 0.3 percent, to
close the year at 10,722.76, after two consecutive seasons of
gains.

The Hong Kong market ended the year with a loss of 2,480.68
points, or 18. 8 percent, since January 2.

In Singapore, blue-chip stock prices ended the year 1.0
percent higher on largely window-dressing activities, with buying
interest seen in selected blue chips and electronic stocks,
dealers said.

"Trading was uneventful ... There is no incentive to do much
window-dressing, given the regional concerns," a dealer with a
local brokerage said. Trading will resume on Friday after the new
year holiday.

The blue-chip Straits Times Industrials index of the Stock
Exchange of Singapore rose 15.01 points higher at 1,529.84 in
half-day new year-eve trading. The broader All-Singapore index
rose 2.60 points to 425.94.

In Sydney, Australian shares closed 0.6 percent up after a
half day's trading in which brokers said positive leads from
Tokyo and New York had combined with interest in Telstra to fuel
a late rally.

The Australian Stock Exchange's key all ordinaries index rose
15.1 points to 2616.5.

"It finished on a pretty good note," Henderson Charlton Jones
dealer Michael Baker said, adding that interest in Telstra ahead
of the communication giant's official incorporation into the all
ordinaries index on Jan. 2 had helped boost the bourse.

In Kuala Lumpur, Malaysia's key stock index ended the year 0.9
percent higher boosted by late window-dressing activities by
local funds, dealers said.

"A burst of late local support eclipsed the profit-taking
earlier. Some funds were pushing for a favorable close towards
the year ... it was also largely window dressing," said a local
institutional dealer.

The Kuala Lumpur Stock Exchange's 100-share weighted composite
index rose 5.05 points to end at 594.44, after hitting an earlier
low of 583.11 points 12 minutes before the closing bell.

A banking analyst at a local brokerage said news of impending
mergers in the finance sector lifted market sentiment, with
financial stocks dominating trade.

In Bangkok, Thai share prices closed 1.9 percent higher on
speculative buying in blue chips led by local investors ahead of
the long weekend.

The Stock Exchange of Thailand (SET) broad based index closed
up 6.87 points at 372.69, while the SET 50 closed O.43 points
higher at 25.98.

In Taipei, Taiwanese stocks rose 0.5 percent, led by
technology issues, as institutional investors dressed up their
portfolios for year-end rankings.

"Fund managers increased holdings to raise the net-worth of
their funds for year-end rankings, while retail investors stepped
onto the sidelines ahead of the New Year holiday," said Clement
Lu of Taiwan International Securities Corp.

The Taiwan Stock Exchange weighted price index rose 41.50
points to 8,187. 27.

In Shanghai, the B shares, nominally reserved for foreign
investors, closed 0.9 percent higher, pulled up by a late rally
in Hainan Airlines and Eastern Communications.

"A late rally in Hainan Airlines and Eastern Communications
pushed the market back into positive ground," a dealer with a
U.S. brokerage here said.

The Shanghai Stock Exchange's B share index rose 0.5 points to
55.88 points while the A share index of locally-traded stocks
climbed 13.72 points, or 1.1 percent, to 1,258.49 points.

In Auckland, New Zealand share prices closed up 1.0 percent
amid window dressing.

"It is a good finish for the year," Ord Minnett's Ted
Szczepanski said.

"There was definitely some window dressing, but having said
that the market has gone up 4 percent in three days, which is a
great finish to the year - whether that's a mark of confidence of
what the New Year will bring or not I don't know," Szczepanski
said.

The NZSE-40 capital index at the close was up 22.61 points at
2,314.91 on a turnover of NZ$29.48 million (US$17 million).