After Tuesday decline, HK stock market stabilized on Wednesday while HSI opened 200 points higher. Although A share continued to rebound, investors are cautious given a series amount of unfavorable factors, Hong Kong stock market narrowed its gain afterward. The Hang Seng Index added 128 points to close at 23,024 while the H share index also rebounded 55 points to 12,827. Market turnover reduced to HK$82.3bn. Local property plays showed signs of rebound on Wednesday as investors accumulate at low level after recent selling. SHK Properties (0016.HK) and Hang Lung Properties (0101.HK) rose 1.5% and 1.9% each. On the other hand, sport sector dropped substantially, Anta (2020.HK) and Li Ning (2331.HK) lost 5.8% and 3.3% each.

Hong Kong shares ended higher for the second consecutive session Thursday, led by exporters, because of gains on Wall Street overnight after a brighter outlook for U.S. consumer spending.

The blue-chip Hang Seng Index rose 30.82 points, or 0.13%, to 23,054.68 after trading between 23,037.86 and 23,283.22. The index rose 0.7% in the past two sessions

Market volume totaled HK$74.44 billion, down from HK$82.31 billion Wednesday.

Analysts said they expect local shares to trade between 22,500 and 23,500 until the end of the month, though concerns about further tightening measures in China and tensions on the Korean peninsula could lead to volatility.

'It's going to be difficult to breach the recent peak (of 24,887 hit Nov. 11) given lingering China tightening worries,' said Alex Wong, a director at Ample Finance Group.

Ben Kwong, chief operating officer at brokerage KGI Asia, said he expects the local market to find support at 22,500 in the near term.

'This is only a technical rebound, much larger jumps are unlikely,' Kwong said. 'The decline in trading volume suggests investors are still cautious about the market outlook,' he said.

The Dow Jones Industrial Average rose 150.91 points, or 1.37%, Wednesday to 11,187.28 after the Reuters/University of Michigan consumer sentiment index rose to 71.6 in November from 67.7 in the prior month, topping expectations.

In Hong Kong, exporters led Thursday's gains because of the upbeat outlook for U.S. consumer spending.

Consumer goods exporter Li & Fung, which derives a large proportion of its revenue from U.S. customers, surged 5.2% to HK$45.80, while shoe maker Yue Yuen jumped 0.6% to HK$27.55.

A surge in the price of oil propelled energy firms higher. PetroChina rose 0.3% to HK$9.52 and coal producer Shenhua rose 0.7% to HK$33.75.

Light, sweet crude for January delivery settled $2.61, or 3.2%, higher at $83.86 a barrel on the New York Mercantile Exchange Wednesday, the largest one-day percentage gain in four months. At 0830 GMT, Nymex crude oil for January delivery was down US$0.15 at US$83.71.

Sihuan Pharmaceutical jumped 4.1% to HK$5.88 after the Chinese cardiocerebral vascular medicine producer said Thursday it agreed to buy a Chinese drug company for up to CNY2.4 billion to expand its product portfolio and sales network.

TPV Technology ended flat at HK$5.00 after the computer monitor maker said Wednesday its third-quarter net profit fell 19% to US$31.96 million from US$39.50 million a year earlier, hit by weaker-than-expected demand in Europe and North America amid a still uncertain economic environment in those regions.

Hong Kong shares ended higher Monday as bargain hunting emerged following the benchmark index's 3.1% fall last week.

The blue-chip Hang Seng Index rose 288.97 points, or 1.3%, to 23,166.22 after trading between 22,785.28 and 23,187.75 during the session.

Market volume totaled HK$65.18 billion, down from HK$66.31 billion Friday.

Analysts said they expect the index to trade within 22,800 and 23,800 points over the next month, as uncertainty over further tightening measures in China and Europe's debt woes was likely to persist.

'Today's rebound was just a technical one,' said Castor Pang, research director at Cinda International. 'Fundamentals have not changed much; the market was just oversold,' he said.

Haitong Securities said in a research report that the Hang Seng Index's recent correction from its year-to-date high of 24,988 reached on Nov. 8 has taken local blue chips back to undemanding valuations of 14.4 times forward price to earnings ratios and said that any further sell-offs should be viewed as an opportunity to accumulate shares. 'While the Korean and European issues may look daunting near term, the likelihood that they will deteriorate into full-blown disasters remains slim,' it added.

Prudential Brokerage's associate director Alvin Cheung said he expects the index to trade as high as 24,400 to 25,000 points by the end of the year. 'Trading sentiment remains cautious but I think some window-dressing activities ahead of the year-end may provide further support to the local market ahead.'

Consumer-goods exporter Li & Fung led gains, rising 4.7% to HK$47.75 amid positive signs in U.S. economic data, most recently indications Black Friday weekend sales were robust. Alex Wong, an analyst at Ample Financial, said Li & Fung was the 'obvious' choice among blue chips that should benefit from likely strong U.S. consumer spending during the holidays.

Cnooc ended 1.7% higher at HK$17.16 after saying Sunday that Bridas Corp., a 50-50 joint venture between the Beijing-based oil company's international arm and Argentine-owned Bridas Energy Holdings, agreed to buy the 60% stake in Pan American Energy that it doesn't already own from BP for US$7.06 billion. The deal will give the joint venture full ownership of Pan American and bolster its presence in South America.

Investors' reaction to the deal was mixed, with some investors saying they expect earnings accretion to be limited given the heavy export tax imposed by the Argentinian government, and others saying the deal would boost Cnooc's reserves and support growth

@Mzee Young

That is a good spread you have in Africa. I got useful info from African Alliance Ghana when I sent them an email ealier on. I will follow up with an account and a trip.

I hardly hear you talking about Australia yet, you seem interested in resources...

@Chief Pkoli,

I invest in resource sector in Australia market my brokers are common wealth securities
www.comsec.com.au

I am only writing on Hongkong / China markets at the moment.

China's yuan was moderately lower against the U.S. dollar late Tuesday, after the U.S. dollar strengthened further against the euro overnight because of continued concerns over European sovereign credit.

But the yuan drew some support from banks and businesses that believe the currency is at an attractive level before it resumes its appreciation trend against the dollar shortly.

On the over-the-counter market, the dollar was at CNY6.6670 around 0930 GMT, up from Monday's close of CNY6.6606. It traded between CNY6.6625 and CNY6.6700.

The People's Bank of China set the dollar-yuan central parity rate at 6.6762, the highest fixing since Nov. 3 when it was set at 6.6818, and up from 6.6700 Monday.

That came after the euro fell below $1.31 for the first time since Sept. 21 in New York trade Monday due to concerns over a deterioration in the European sovereign debt crisis and despite the approval of an EUR85 billion rescue package for Ireland by European financial leaders on Sunday.

At 0930 GMT, the euro was at $1.3009, down from $1.3120 in late New York trade Monday.

'The general market trend over the past few sessions has been to sell dollars to lock in the attractive exchange rate, but the dollar-yuan won't fall too much because worries about euro-zone debt will keep the dollar strong relative to other major currencies,' said a Guangdong-based foreign bank trader.

Another trader said the market is also bracing for a potential dollar short squeeze as businesses' routine month-end settlement needs may create a glut of dollar bids, catching banks' trading desks short.

'One must be cautious for a potential dollar short squeeze later in the session as it's the end of the month,' said a Shanghai-based trader at an European bank.

But she said yuan demand dominated the market in the past two sessions.

'For many, the dollar above CNY6.6700 is a good level to sell,' she said.

Offshore, the one-year nondeliverable forward was at 6.5433/6.5483, up from 6.5400/6.5470 late Monday.

Hong Kong shares ended higher Wednesday due to bargain hunting in Chinese financial and property firms after data showed manufacturing activity in China expanded at a faster pace in November than in the previous month.

The blue-chip Hang Seng Index rose 241.81 points, or 1.1%, to 23,249.80 after trading between 22,842.12 and 23,325.79.

Market volume totaled HK$89.02 billion, down from HK$101.01 billion Tuesday.

Analysts said that despite the uncertainty about further tightening measures in China, they expect the city's benchmark index to find support at the 23,000 level in December due to year-end window-dressing activities by fund managers.

China's Purchasing Managers Index rose to 55.2 in November from 54.7 in October, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement. It was the index's highest level since April.

The HSBC China Manufacturing Purchasing Managers Index, another measure of nationwide manufacturing activity, rose to 55.3 in November from 54.8 in October, HSBC Holdings PLC said, the highest reading since March.

Readings above 50 indicate an expansion in manufacturing activity.

'The latest economic indicators show demand remains strong in China but inflation data scheduled to be reported in mid-December may surprise on the upside, prompting further monetary tightening measures from Beijing,' said Edward Huang, a strategist at Haitong Securities.

Chinese property developers led the recovery in Hong Kong. China Overseas Land rose 2.9% to HK$15.36 after falling 3.9% over the past four sessions. China Resources Land rose 1.9% to HK$14.18 after falling 1.4% Tuesday.

Chinese lender Bank of China rose 1.4% to HK$14.49 following a 0.5% decline Tuesday, and Bank of Communications rose 1.4% to HK$8.22 after falling 0.9% the previous day.

Property-to-ports conglomerate Wharf (Holdings) rose 7.1% to HK$55.90 after it said Tuesday it bought two parcels of land in Changzhou, in eastern China's Jiangsu province, for CNY1.12 billion at a land auction.

'As the two sites are connected and it's aiming at building high-end residential projects, I expect the gross margin to be attractive,' said Prudential Brokerage associate director Alvin Cheung.

Hutchison Whampoa rebounded 4.2% to HK$81.00 after falling 1.5% Tuesday. The conglomerate also said it agreed to buy C$345.5 million-worth of Husky Energy shares to maintain its stake in the oil producer and refiner

Hong Kong shares ended higher Thursday, tracking gains on Wall Street overnight following a more positive economic outlook for the U.S. and European markets and plans by the International Monetary Fund to double lending capacity in the next few months.

The blue-chip Hang Seng Index rose 199.00 points, or 0.9%, to 23,449.00 after rising as high as 23,575.38 intraday. Market volume for the session totaled HK$93.03 billion, up from HK$89.02 billion Wednesday.

Analysts said they expect the index to rise as high as 24,500 points by the end of January, as year-end window-dressing activities and more clarity on whether China will introduce further tightening measures will help lift investor interest.

'The labor market and the retail sector in the U.S. are doing better than expected,' said Jasper Tsang, research director of CSC Securities.

Data on Wednesday showed the U.S. added 93,000 private-sector jobs in November--the 10th consecutive month of gains and the largest one-month gain in three years--which helped boost U.S. markets and lead Hong Kong shares higher Thursday.

Tsang added that plans by the International Monetary Fund to boost lending capacity to better deal with the European sovereign debt crisis has also helped allay investors' concerns.

The IMF expects to double its lending capacity to US$450 billion over the next few months, according to IMF officials and documents.

The Dow Jones Industrial Average rose 2.3% Wednesday to 11,255.78, its largest gain since Sept. 1 and its sixth biggest one-day jump this year.

The rally, which was boosted by the IMF's plans, effectively wiped out November's sluggish performance, which saw the Dow finish 1% lower.

Hong Kong investors were also encouraged by the recent strength in China's manufacturing activity, although an analyst said the indicators could be interpreted both ways.

'The indicators can be a good sign for the stock market as it can mean that the fundamentals are strong enough to support the pressure of inflation and new monetary policies. But on the other hand, it can prompt the Chinese government to introduce further tightening measures,' said Ben Kwong, chief operating officer at KGI Asia.

China's Purchasing Managers Index rose to 55.2 in November from 54.7 in October, the China Federation of Logistics and Purchasing said earlier this week. It was the index's highest level since April.

Many Chinese energy companies were among the day's biggest gainers, after a surge in crude prices in the U.S. overnight. Offshore oil producer Cnooc jumped 3.2% to HK$17.54, while PetroChina rose 2.4% to HK$9.97.

Nymex crude for January delivery rose 3.1% to US$86.75 per barrel on Wednesday, its biggest one-day dollar gain since July 22.

However, China Shenhua slumped 5.1% to HK$31.60 and China Coal dropped 4.4% to HK$12.04, following reports that Beijing has ordered a price freeze on coal deliveries next year as part of efforts to contain inflation.

China's coal miners are required to keep prices for coal excavated in 2011 unchanged from this year's contracts, the National Development and Reform Commission's pricing department director was cited as saying Wednesday in a report by the state-controlled Xinhua news agency

First Ghana oil production to be live on TV December 15

On Wednesday December 15, 2010, commercial production of oil will begin at Ghana’s Jubilee oil field and it will be shown live on Ghana TV.

A press release from Tullow Oil issued Monday November 29, 2010 and copied to ghanabusinessnews.com says the event will be celebrated at a ceremony to be hosted by president John Evans Atta Mills.

The Jubilee field was discovered in June 2007 and the first oil will be the culmination of three and a half years of work by the Ghana government and the Jubilee partners. The partners are Tullow Oil plc (Tullow), Anadarko Petroleum, Kosmos Energy, Ghana National Petroleum Corporation, Sabre Oil and Gas and E.O. Group.

According to the release, in preparation for the first oil, oil was produced to the FPSO Sunday November 28, 2010 and is being used to commission processing systems and facilities ahead of First Oil.

Immediately after First Oil, it says, the field will be capable of flowing up to 55,000 barrels of oil per day but as new wells are completed over a three to six month period, production will increase to 120,000 barrels per day.

The blue-chip Hang Seng Index fell 82.83 points, or 0.4%, to 23,237.69 after trading between 23,213.71 and 23,612.25.

Market volume fell to HK$75.94 billion from HK$85.19 billion Friday.

Analysts said they expect the index to trade between 22,800 and 24,000 points the rest of the month as investors weigh the risks in the U.S., Chinese and European markets.

'The market is still in consolidation mode for the time being. Worries about further tightening measures from China are keeping stocks under pressure,' said Ben Kwong, associate director for KGI Asia.

He said investors were awaiting China's Central Economic Work Conference, an economic policy meeting that usually takes place in early December, for further insight into the country's economic policy.

Investors in mainland China and Hong Kong are also awaiting the release of China's November inflation data on Dec. 13.

Jackson Wong, investment manager at Tanrich Securities, said it was unclear why the market turned lower in the last minutes of trade. 'The market must not have a very optimistic view about the U.S. trading session to come,' he said.

Comments by Federal Reserve Chairman Ben Bernanke in an interview with CBS's '60 Minutes' that aired Monday morning during Asia time were met with a mixed reaction from investors.

His statement that the U.S. economy isn't likely to fall back into recession spurred local export companies such as Li & Fung, which rose 1.2% to HK$46.15. But CBS News on Friday said that in its pre-recorded interview Bernanke didn't rule out expanding the Fed's asset-purchase program.

Banks fell with BOC Hong Kong dropping 4.2% to HK$26.50, Bank of China falling 2.6% to HK$4.12 and China Construction Bank sliding 1.8% to HK$6.97.

The city's two largest developers also ended lower. Cheung Kong dropped 1.4% to HK$115.00 and Sun Hung Kai Properties fell 1.0% to HK$129.50.

Macau casino operators all ended in the red. Sands China fell the most, dropping 5.0% to HK$16.32. The decline followed a 1.3% drop Friday after the Macau government rejected the company's application for rights to a land plot in Macau's fast-growing Cotai area.

Credit Suisse analyst Gabriel Chan wrote in a report that though the impact on earnings projections was limited, the news would 'inevitably hurt sentiment.' He also said the government's decision raises 'a lot of questions, particularly over the reasons for the denial