HK shares rise 1.7 pct; extends rally to 5th month

Published: 31 Jul 2009 00:08:54 PST

HONG KONG, July 31 - Hong Kong shares extended their rebound on Friday after a sharp drop mid-week, to rise 1.7 percent, ending its fifth straight month of gains on a strong note.

The benchmark Hang Seng Index finished up 339.25 points at 20,573.33 after scaling an 11-month high of 20,712.66 earlier amid strong corporate earnings forecasts and analyst upgrades.

The gauge gained 11.9 percent in July and 3 percent in its third consecutive weekly rally despite Wednesday's sharp pullback on worries about monetary tightening by Beijing.

The China Enterprises Index, which represents top locally listed mainland Chinese stocks, was up 1.1 percent at 12,123.59.