HONG KONG, June 26 (Reuters) - Hong Kong shares are seen rising on Friday, boosted by firmer overseas markets, but the rally is likely to be capped by profit-taking later in the day.
Standard Chartered, which reported record levels of income and profit in the first five months, could also help lift sentiment, brokers said.
The market is seen overbought but the Hang Seng Index may test the 18,500-point level before pulling back, said Francis Lun, general manager of Fulbright Securities.
"Property stocks are expected to lead the rise due to their sound fundamentals, while Chinese banks may be underpressure following their recent strength," he said.
A strong response to recent IPOs, including 361 Degrees and Bawang, may boost demand for similar stocks, brokers said.
The benchmark Hang Seng Index gained 2.1 percent on Thursday, with financials and properties leading gains.
STOCKS TO WATCH
* G-Resources Group, formerly Smart Rich Energy, late on Thursday said it would sell up to 13 billion new shares for HK$4.55 billion or HK$0.35 each, representing a 77 percent discount to the stock's close of HK$1.52 on Thursday. Bennelong Asia Pacific Multi Strategy Equity Master Fund Ltd and BlackRock Investment Management (UK) Ltd will subscribe to some of the shares. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090625/LTN20090625492.pdf
* Angang Steel late on Thursday said the company and its parent, Angang Holding, had not considered and had not begun any negotiations relating to exploring or investing in Banxi Ore Mine in Liaoning province. Trading in the shares will resume on Friday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090625/LTN20090625389.pdf
* Sino-Ocean Land said it had completed an issue of 2.6 billion yuan ($380.4 million) in corporate bonds with a coupon of 4.4 percent per annum. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090625/LTN20090625299.pdf ----------------------MARKET SNAPSHOT @ 2355 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 920.26 2.14% 19.320
USD/JPY
MARKET SUMMARY *Oil surges on Nigeria attack, US refinery problem [nSP191786] *Dollar slides as stocks rise, Swiss franc falls [nN25293594] *U.S. Treasuries rose on jobless claims [nN25578610] *Wall St rallies on Bernake relief, consumer shrs [nN25295712] (Reporting by Parvathy Ullatil; Editing by Chris Lewis)