Hong Kong shares edge up as casino stocks extend gains
HONG KONG Oct 6 (Reuters) - Hong Kong shares held steady on Tuesday, supported by expectations the U.S. Federal Reserve will wait longer to raise interest rates and lifted by further gains in casino stocks.
The benchmark Hang Seng index rose 0.1 percent, to 21,881.66 points. The China Enterprise index, which tracks Chinese companies listed in Hong Kong climbed 0.7 percent, to 9,951.71 points.
Investor sentiment on Tuesday morning remained bullish for the short-term and analysts expect Hong Kong stocks to extend gains thanks in part to cheap valuations.
"Basically we have a very good start to this quarter, after the very poor performance of the third quarter," said Mark To, head of research at Wing Fung Financial Group, referring to a more than 20 percent plunge in the quarter ended-September.
"I think most of the institutional investors and even retail investors alike are going bottom-fishing, or bottom-hunting, because the valuation is really cheap at the moment."
Two American IPOs in Hong Kong on Thursday - IMAX China and Regina Miracle - are also expected to boost short-term market momentum thanks to strong demand, analysts said.
Casino stocks extended gains on Tuesday, with Sands China up 7 percent, Galaxy Entertainment rising 4.4 percent and Wynn Macau climbing 6.2 percent.
The main index was weighed down by a 3.3 percent fall in China Resources Land and a 2.1 percent drop in Hang Lung Properties.
China's markets are closed until Oct. 8 for National Day holidays. (Reporting by Jessica Macy Yu; Editing by Simon Cameron-Moore)
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