Sars hopes boost Hang Seng index

HONG KONG - The Hang Seng index of 33 blue chips ended more than 1 per cent higher yesterday on hopes that the deadly Sars virus may be loosening its grip on the territory.

Aviation-to-property conglomerate Swire Pacific was one of the top performers after it said it would maintain its dividend because Sars had had only a limited impact on its business, backtracking on an earlier announcement that it may trim the payout.

Its subsidiary Cathay Pacific Airways slashed its dividend but its share price strengthened after crude oil prices fell and on optimism the World Health Organisation may soon lift its advisory against travel to Hong Kong.

The Hang Seng Index rose 1.23 per cent to 8916.49 and is into its fourth successive year of losses with a fall of 4.34 per cent so far in 2003.

Turnover at HK$6.9 billion ($1.57 billion) was just below average.

Swire shares shot up 4.19 per cent to HK$32.30, and Cathay shares ended up 1.55 per cent at HK$9.80.

* Tokyo was closed for Children's Day.

- REUTERS