Investors were more risk averse amid US-North Korea tensions. The Hang Seng index once fell 252 points yesterday, but cut its loss to 97 points and closed at 27,757.
Major blue chips fell but Tencent (700) and local property counters bucked the trend. Wharf (004) surged 13 percent to an all-time high after interim results topped estimates and as it unveiled plans to spin off Wharf REIC.
Hong Kong Exchanges and Clearing (388) said its first-half net profit rose 17.02 percent year-on-year to HK$3.49 billion on revenue and other income of HK$6.2 billion, up 10.2 percent from a year earlier. It attributed the gains to a significant increase in net investment income to HK$466 million and a one-off HK$55 million post liquidation interest from Lehman Brothers' liquidators.
HKEx recommended an interim dividend of HK$2.55 per share, up from HK$2.21 a year ago. Turnover in the local market now averages at HK$90 to HK$100 billion a day. With this volume, HKEx's revenue is tipped to grow in the second half of the year.
If you believe local stocks are entering the third phase of a bull run, and that the local and China markets will be integrated further, there may be a case then to assume that HKEx's share price will rise further.
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