Hong Kong shares ended at their highest level so far this year on Tuesday after a choppy session in which insurance firms rose after AIA set the price range for its Hong Kong initial public offering, and developers slid because of profit-taking following recent gains.

The blue-chip Hang Seng Index rose 20.48 points, or 0.09%, to a more than 10-month high of 22,639.14, after trading between 22,504.05 and 22,670.81. It was the index's highest closing level since hitting 22,643 on Nov. 19 last year.

Market volume totaled HK$79.69 billion, down from HK$96.03 billion Monday.

The benchmark index has risen in 19 of the past 23 sessions, but analysts said they expect AIA's huge initial public offering to continue to generate interest in the local market in the next couple of weeks.

'The index looks likely to test the next target at 23,000 in the near term as sentiment remains strong,' said Tanrich Securities investment manager Jackson Wong.

AIA is looking to raise up to US$17.1 billion from its IPO after setting a price range of HK$18.38 to HK$19.68 for the shares, according to people familiar with the deal.

Chinese insurance firms led the gainers amid AIA's fund-raising. China Life surged 6.9% to HK$33.25 and PICC Property & Casualty rose 2.8% to HK$11.12.

Bourse operator Hong Kong Exchanges rose 1.8% to HK$159.70 after JPMorgan raised its target price to HK$168.00 from HK$158.00.

Amid strength seen in global stock market, the local stock market performed well on Wednesday with the Hang Seng Index open above 23,000. However, profit taking pressure emerged with the HSI narrowed its gain. The HSI finished the day 241 points higher at 22,880. H share index also added 89 points to 12,772. Market turnover maintained heavy at HK$104.8bn. Commodity sector remained firm with CNOOC (0883.HK) and Yanzhou Coal (1171.HK) rose 2.5% and 2.2% respectively. For financial sector, RMB internationalization counter retreated while mainland banking sector performed well with Bank of China (3988.HK) rising 2.9%.

A-share market resumed trading after the long holiday and performed strong on Friday, however it cannot trigger local stocks to further rally, Hang Seng index range traded around 23,000 level and finished the day 59 points higher at 22,944. H-share index gained 20 points to 12,758. Market turnover was HK$86.6bn. Zijin Mining (2899) resumed trading after investigation on linkage issue and fine with RMB9mn, share price surged 12.4%. Local property plays were strong, Cheung Kong (0001) soared 3.4% .Esprit (0330) surged 4.4% as its target price was adjusted upward by brokers. Goldwind (2208) closed 6% higher than its offer price on its first trading day.

HK stock market persisted on Monday, A share market rose with high turnover, to support HK stock market to move further higher, the Hang Seng Index rose through 23,100 and extended its gain afterward. The Hang Seng Index rose 263 points to 23,207 while H share index added 194 points to 12,952. Market turnover rose to HK$95.2bn, reflecting strong market momentum. A share turnover rose substantially, China Everbright (0165.HK) which engaged in mainland brokerage business, rose 4.9% to HK$19.72. Besides, buying interest seen on A share non-ferrous metal sector which also helped to lift the gain of the related play. Of which, Jiangxi Copper (0358.HK) and Chalco(2600.HK) rose 4.4% and 4.3% each.

Hong Kong stocks opened higher on Thursday, saw resistance at 23,800. Given the strong performance of A-share market, together with Chinese banks and recourses plays rally, Hang Seng closed at high at 23,852, jumped 394 points. H-share index gained 274 points to 13,576. Market turnover increased to HK$138.5bn, showing that large investors profit taking at high level. For individual plays, HKEX (388) saw the highest of $179.9, which is the highest in the past two year, full day gained 5%.

@Pkoli,

Not earlier than 2014 if we are talking about imrproved stability of major currencies and advanced world economic recovery.

There is no cause to worry as there are several bargain hunting on commodities and energy sectors.

As the major currencies weaken, the above sectors become investors haven.

As a trader in commodities and energy stocks overseas, so far so excellent.
The world indexes has been on the upswing buoyed
by energy, commodity and of recent the real estate sector. The industrials and and financials in particular are neither here nor there in US and European market, wheras the financials in HNK / Asia are showing strong improvements in their bottomlines (ICBC, BOC, B Comm etc), as their exposure to US/European credit crunch were minimal.

Expect sharp shortfall on grains and other agric resources due to worldwide flood and draught due to remarkable climatic changes in 2010. This points to bull run on wheat, soya bean, rice equities in the advanced worldin 2011.

I have been researching of recent in this direction to complement rising energy and commodity prices to take appropriate position where necessary.

On your local nse bourse Congrats on correctly predicting the rise of post rights KCB, I have no regrets for not taking up my rights , as I believe I have had enough of KCB. It is worthwhile in due course to diversify into other blue chips that I do not have any stake in such as JUB, NMG,BBK.STANCHART,KK and might be increase my stake in EABL, KPLC, KENGEN,ARM, all with long term perspective

bralirwa in rwanda has opened a pre-offer running for two weeks, with the ipo date and price scheduled for release in a week. If the price is rite, i will put all my eggs in this one basket

Hong Kong shares ended slightly lower Friday, succumbing to profit-taking after recent sharp gains, but Chinese state lenders continued to rise because of attractive valuations and strength on the mainland's stock markets.

The blue-chip Hang Seng Index fell 94.54 points, or 0.4%, to 23,757.63, after falling to an intraday low of 23,650.30. For the week, the index was up 3.5%.

Market volume fell to HK$123.34 billion from HK$138.53 billion Thursday, but it was the second highest level so far this year, underscoring continued strong investor interest and liquidity inflows.

'The liquidity-driven rally looks set to last locally and remains convincing fundamentally as (the market's) valuation is still well below an over-stretched level,' said Taifook Securities in a note. The benchmark index is now trading at 14.8 times historic earnings.

Analysts said they expect the Hang Seng to rise further in coming weeks and likely reach the psychologically important 25,000 level later in the fourth quarter. However, they expect the index to meet some short-term resistance at 24,000 given the market's recent surge. The Hang Seng is up 16% since the start of September.

'The overall sentiment remains positive,' said Belle Liang, research director at Core Pacific-Yamaichi International. 'Profit-taking at the present stage would only be modest, because we can see that the market turnover is huge and that shares of Hong Kong Exchanges continue to surge.'

Bourse operator Hong Kong Exchanges ended up 0.9% at HK$180.00, paring its gains after hitting a high of HK$185.90. Investors treat the stock as a proxy for the equities market's outlook, given Hong Kong Exchanges' income is closely linked to trading volumes.

Property developers were among the day's biggest blue-chip decliners, after the government announced new measures this week to cool surging residential property prices.

Hang Lung Properties fell 1.6% to HK$37.70, Wharf Holdings ended down 1.2% at HK$53.15, and Sun Hung Kai Properties declined 0.3% to HK$137.00.

But Chinese banks rose, playing catch-up with other blue chips' earlier gains and because of a strong performance by China's stock markets. The Shanghai Composite Index ended up 3.2% at 2971.16, its highest closing level since April 23. The Shanghai index rose 8.5% this week, its biggest weekly gain in 20 months.

'China banks' stock prices are lagging behind the market a bit, so they are still a buy to me at the present levels,' said Core Pacific's Liang.

Bank of Communications rose 2.1% to HK$9.43, Bank of China added 1.8% to HK$4.57, and ICBC gained 0.5% to HK$6.38.

Analysts said investors are keen to hear news of fresh initiatives from the Chinese government following a major strategy meeting. China's Communist Party is beginning its annual meeting on Friday to discuss the nation's next five-year plan.

'As the China government plans for the coming five years, many investors are turning their interest to shares in sectors such as new energy, which will likely be supported by new policies,' said Conita Hung, director at Delta Asia Financial

Hong Kong stocks retreated and opened 118 points lower on Friday, Hang Seng Index finished the day 94 points lower at 23,757. H-share index closed at 13,613, rose 37 points. Market turnover remained high at HK$123.3bn. Cash Financial (0510) and Value Partners (0806) announced share place, the former surged 28.8% whereas the latter plunged 7.7%. Renewable energy plays have seen buying interest, Comtec (0712) and Longyuan (0916) climbed 3.6% and 4.1% respectively. As the new policy address restricts immigration based on real estate investments, market speculates that capital will flow into the stock market, stimulating brokerage plays to soar, Guotai (1788) and Bright Smart (1428) advanced 11.4% and 8.1% respectively

Uganda needs well-informed, skilled oil negotiators

FROM MONITOR NEWSPAPER

Posted Friday, October 15 2010 at 00:00

Since 2006, proven commercial oil reserves have been discovered in the albertine region, south western and other parts of Uganda. However, Ugandan oil negotiators are not well-informed and skilled enough to deal with aspects of an oil economy which include social, economic and political impacts of oil.

Oil in Africa has been characterised by corruption, conflicts, wide-spread poverty and degradation of natural habitats. This is the case in Nigeria, Angola and Congo among others. However, Uganda is failing to draw a lesson from such countries.

Uganda is a new entrant in the oil industry. It still has no oil legislation and revenue management systems in place. This has made oil companies to become strategic and take advantage of the weak capacity of Uganda’s oil negotiators.

Heritage Oil used the weakness in Uganda’s oil legislation and revenue management not to pay the $405 million and instead seek arbitration in London. The question is, will Heritage Oil meet this obligated tax after ceasing all its operations in Uganda? It is noted that Heritage oil and gas deal delivered very high returns on investment - that is $9 for each dollar invested.

So, while the moral case that Uganda should benefit financially from the sale of Heritage oil assets is clear, the legal argument on either side is less so.

The rules concerning the transfer of petroleum assets and capital gains taxation in Uganda should be clarified and included in the good governance agenda. It is the prayer of many Ugandans that urgent changes should be made in the contracts, legislation and regulatory regime covering oil so as to achieve some level of environment protection, ensure accountability, minimise economic distortion through revenue flow, and capture more appropriate share of the revenue and to re-apportion the economic risks.

Such renegotiations must ensure that environment protection is privatised during both exploration and production, with clear lines of accountability, fines to act as deterrents against failures and enforced reinstatement of land and water to prior conditions.
More so, minimising the impacts of sudden major revenue flows requires a long term plan for oil revenues, in which the revenues do not merely enter the standard national budget.

To Uganda’s oil negotiators, it should be known that the aim of an oil company in negotiations on economic terms are to maximise upside, while minimising downside as written by Thomas Waide (1996:2003).
Terry Karl, a professor and prominent author on the Dutch disease and resource curse, argues that oil by itself is not a problem. He says what matters is the social, economic and political institutions in which oil is inserted.

Therefore, oil can either be a tool for development or for war, depending on how it is managed and