Stocks advance, halting 3-day drop; Esprit surges

Hong Kong stocks rose for the first time in four days as property shares gained after developers including China Overseas Land & Investment Ltd reported higher sales.

The Hang Seng Index added 1.2 percent to close at 19,790.28, after falling as much as 0.5 percent, and changing directions at least 13 times. The Hang Seng China Enterprises Index, which tracks the so-called H-shares of Hong Kong-listed mainland companies, climbed 1.9 percent to 11,200.33. Esprit Holdings Ltd jumped 5.1 percent after Goldman Sachs Group Inc reiterated its "buy" rating on the retailer.

Resourcehouse clarifies coal buyer; reaffirms deal

IPO candidate Resourcehouse Ltd re-affirmed that it had signed a binding coal sales pact worth $60 billion with a Chinese buyer, saying confusion over the deal was due to an error over the buyer's name. Australia-based Resourcehouse has signed a coal-supply agreement with China Power International Holding Ltd, and not China Power International Development Ltd, as stated in its media statement over the weekend, the firm said yesterday. Billionaire Clive Palmer, founder of Resourcehouse, said in a statement the $60-billion headline contract figure was based on its forecast of coal market prices over the life of the agreement to sell 30 million tons of coal annually for the next 20 years.

HK dollar inches higher, range trading expected

The Hong Kong dollar edged higher yesterday and dealers expected the currency to trade narrowly, with eyes on the equity market and US dollar trends. The local currency was quoted at 7.7700 against the US dollar at 0534 GMT, after shuffling between 7.7690 and 7.7715. A dealer at a regional bank forecast the USD/HKD spot rate would trade between 7.7680 and 7.7730 ahead of the Lunar New Year holiday.

China Daily/Agencies

(HK Edition 02/10/2010 page2)