Hong Kong's top share index rose for the first time in six sessions on Tuesday, eking out gains as investors fished for bargains, particularly in the property sector.
Global security concerns and a US Federal Reserve meeting, which decides interest rate policy, later on Tuesday sidelined many investors and turnover fell to its lowest level this year.
The benchmark Hang Seng Index which groups 33 blue chips, rose 0.1 percent, or just 13.21 points, to close at 12,932.62 points after spending much of the day in negative territory.
"Many investors were burnt last week after the bombs in Spain so the mood is very cautious," said Peter Lai, sales director at DBS Vickers Securities.
The property sub index rose 0.99 percent, led by Henderson Land Development Ltd, which rose 1.11 percent to HK $36.50 ahead of its first-half earnings announcement on Wednesday. Sun Hung Kai Properties Ltd rose 1.06 percent to HK $71.25.
Dominant Hong Kong broadcaster Television Broadcasts Ltd rose 2.32 percent to HK $35.30 ahead of its results announcement, also due on Wednesday.
China conglomerate Shanghai Industrial Holdings Ltd was the biggest blue chip loser, falling 4.1 percent to HK $17.55 on concerns about management at its soon-to-list chip making associate.
Shanghai Industrial has a 12 percent stake in Semiconductor Manufacturing International, which is due to list on Thursday. SMIC issued a statement clarifying "inaccurate statements" made by one of its executives at a news conference.
Brokers said the disclosure problems could hamper SMIC's Hong Kong debut after the world's third largest IPO this year.
"Some key clients have not been participating in the SMIC IPO. A lot of investors are looking to flip it on the first day," said Lee Yu Chuan, who works in regional sales at ABN Amro Asia Ltd.
Other investors sought solace in defensive utilities, with CLP Holdings Ltd up 1.5 percent at HK $40.60. The utility index rose 1.2 percent. Turnover totalled a paltry HK $12.4 billion (US $1.59 billion), much less than a recent average of HK $19 billion.
Technical analysts are forecasting a bounce, with the index deep into overbought territory according to the 14-day relative strength index. China plays, known as H shares, fell 0.06 percent to 4,899.46 points.
China Shipping Development Ltd lost 3.45 percent to HK $5.45 as investors feared a proposed listing by a sister firm would draw funds away from the counter, but China Telecom Corporation Ltd rose 3.7 percent to HK $2.80 ahead of its earnings announcement on Wednesday.
Hua Lien International Ltd, which processes leather for car seats and sofas, fell 34 percent to HK $0.99 in heavy trade on market talk that the firm was planning a share placement.
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