Roundup: Hong Kong stocks rebound as investors remain cautious

HONG KONG, May 29 (Xinhua) -- Heavyweight China Mobile rebounded after a five-day decline, while PCCW gained on news of its restructuring plan, helping Hong Kong shares close higher Thursday.

The blue-chip Hang Seng Index rose 134.48 points, or 0.6 percent, to 24,383.99 after trading between 24,222.05 and 24,542. 10 during the session.

Turnover rose to 64.09 billion HK dollars (8.22 billion U.S. dollars) from Wednesday's 60.21 billion HK dollars (7.73 billion U. S. dollars)

But analysts and traders said the index's gains will likely be capped at the 250-day moving average of 24,786 points this week, as investors remain cautious ahead of the expiry of May futures Friday.

China Mobile, which fell 14.6 percent over the last five sessions on China's plan to restructure its telecommunications industry, rose 1.5 percent to 114.60 HK dollars. Analysts said China Mobile shares were oversold on concerns over increased competition.

Hong Kong's dominant telecom operator PCCW surged 9.4 percent to 5.10 HK dollars, after it said Thursday it planned to restructure its businesses under a new holding company. PCCW said in a statement it will invite investors to buy up to 45 percent of the new holding company, HKT Group, and added the restructuring would facilitate a future listing.

Shares of mid-sized Wing Lung Bank rose 2 percent to 147.40 HK dollars. The Oriental Daily reported the bank is nearing an agreement with China Merchants Bank to sell a 53 percent stake at 156 HK dollars a share, or 3.1 times book value.

Bucking the broad market's upward trend was Hong Kong Exchanges, which fell 1.6 percent to 134.00 HK dollars.