Hong Kong stocks closed at a all-time high in the first trading day of 2007 on Tuesday, with the benchmark Hang Seng Index ending up 345 points or 1.7 percent at 20,310.18.

Turnover reached 50.54 billion HK dollars (about 6.48 billion U.S. dollars). Telecom players led the market upward. Heavyweight China Mobile rose 3.7 percent to 69.7 HK dollars. Even though the company has dismissed market rumors that it might issue A shares in the first half of the year. China Netcom was up two percent to 21.3 HK dollars.

Among financial players, HSBC was 0.6 percent higher at 143.5 HK dollars, ICBC rose 5.8 percent to 5.11 percent on news of its acquisition of a 90 percent stake in Bank Halim Indonesia. BOC jumped 5 percent to 4.48 HK dollars.

The market kicked off its first trading day of the new year on bright note, up 40.12 points, or 0.20 percent, at 20,004.84, breaking the previous record of 20,001.91 set at Thursday. And it closed Tuesday's morning session at all-time high of 20,217.07, up 1.26 percent.

Analysts here said that the bullish sentiments in the market were boosted by the prospects that profits of mainland's large enterprises would jump 20 percent in 2006 and 2007, basing on which they predicted that in 2007, the Hang Seng Index could possibly climb up to as high as 20,323 points. (One U.S. dollar equals 7.771 HK dollars)

Source: Xinhua