Hong Kong Stocks Fall for 5th Day as CyberWorks Extends Tumble
quote.bloomberg.com
By Yeong Choy Leng
Hong Kong, Sept. 14 (Bloomberg) -- Hong Kong stocks fell for a fifth day. Pacific Century CyberWorks Ltd. extended its slump, shedding over a fifth of its value in 11 days as GigaMedia Ltd. and CMGI Inc.'s exit from joint ventures raised concern about CyberWorks' Internet businesses.
``There have been hiccups in some of CyberWorks' projects and since it's largely a concept stock, we'll see a domino negative impact,'' said Tammy Fung, a fund manager at Darier Hentsch Asia Ltd., which invests $200 million in Asia, excluding Japan.
The Hang Seng Index fell 234.35, or 1.4 percent, to 16,395.43, bringing its losses in the past five trading days to 6.9 percent. In the broader market, 360 decliners outpaced 111 gainers while 234 were unchanged. Trade at HK$10.5 billion ($1.4 billion) was 90 percent of the daily average over the past three months.
In China, B shares that foreigners can own fell. The Shanghai B-share index fell 0.8 percent to 68.53, while the Shenzhen B- share index lost 0.03 percent to 119.16.
The following is a list of companies whose shares were active.
Hong Kong stocks:
Pacific Century CyberWorks Ltd. (8 HK ), Asia's second-largest Internet investment firm, fell 70 cents, or 5.7 percent, to HK$11.50, bringing its losses in the past 11 days to 22 percent. This is the lowest level since Dec. 22. SG Securities (HK) Ltd. sold put warrants on the stock, fueling expectations of further downside in the stock. GigaMedia Ltd., one of Taiwan's largest Internet service providers, last week scrapped a plan to form a venture with CyberWorks to distribute video content, hindering the latter's regional expansion plans. Separately, CMGI Inc., a U.S.-based Internet investment company, said it dropped plans to start an international venture fund with CyberWorks. CyberWorks also fell on persistent concern Cable & Wireless Plc will sell its CyberWorks shares, increasing the share supply and diluting the existing share value.
Telecommunications and computer-related shares fell in tandem with their U.S. counterparts. The Dow Jones Industrial Average fell 0.5 percent, led by Hewlett-Packard Co. and Intel Corp. on concern profits will fall short of expectations. China Mobile (Hong Kong) Ltd. (941 HK ), China's No. 1 publicly traded mobile telephone company, fell HK$1, or 1.7 percent, to HK$57.25. Legend Holdings Ltd. (992 HK ), China's No. 1 computer maker, fell 25 cents, or 3 percent, to HK$8. QPL International Holdings Ltd. (243 HK ), a computer parts manufacturer, fell 35 cents, or 5.3 percent, to HK$6.25. ASM Pacific Technology Ltd. (522 HK ), which makes machines to assemble computer chips, fell 65 cents, or 3 percent, to HK$21.20.
Cheung Kong Holdings Ltd. (1 HK ), Hong Kong's largest real estate developer, rose 50 cents, or 0.5 percent, to HK$97.25. The company said it received over 600 applications for 54 units of the fourth phase of its Laguna Verde residential project.
Cosco International Holdings Ltd. (517 HK ), the Hong Kong unit of state-owned China Ocean Shipping (Group) Co., fell 13 cents, or 13 percent, to 89 HK cents after trading was suspended since last Friday. This was the biggest one-day decline since Feb. 22. The company said it will sell 973.6 million of new shares to raise funds to buy the remaining 99.1 percent it doesn't own in Cosco Network for HK$886 million ($114 million).
Founder (Hong Kong) Ltd. (418 HK ), a unit of one of China's biggest software makers, rose 5 HK cents, or 1.5 percent, to HK$3.35. The company said it swung to a first-half profit after reporting losses in the past two years.
PetroChina Co. (857 HK ), China's largest crude oil producer, rose 2 cents, or 1.1 percent, to HK$1.80. Lubrizol Corp., the world's No. 1 maker of fuel additives, said it's investing $30 million to expand its joint venture with PetroChina that makes and markets the chemicals in China.
Swire Pacific (19 HK ), fell HK$1.50, or 2.9 percent, to HK$50.25 on concern earnings in its airline unit will suffer from high oil prices. Cathay Pacific Airways Ltd. (293 HK ), the city's only long-haul airline, fell 55 cents, or 3.8 percent, to HK$14.10.
Technology Venture Holdings Ltd. (61 HK ), a computer product distributor, fell 30 cents, or 8.3 percent, to HK$3.30, its lowest since July 3. The company said it will place HK$108 million ($13.8 million) in shares and use the money to expand its systems integration and software training businesses.
Wah Fu International Holdings (952 HK ), a luggage and handbag maker, fell 0.1 cents, or 0.9 percent, to 10.8 HK cents. The company plans to acquire the entire assets of financial website Quamnet.com Ltd. in a HK$250 million ($32 million) transaction, Ming Pao Daily reported, citing unidentified people.
China B shares:
B shares were mixed on concern China may not join the World Trade Organization this year. China's proposed entry into the global trade body may not be completed by year-end, the WTO's Deputy Director General Andrew Stoler suggested yesterday. Investors were expecting China to join the WTO this September, which would help boost China's exports and spur economy.
Jinzhou Port Co. (900952 CH ), a port operator, fell 0.4 cent, or 1.1 percent, to 35.4 U.S. cents. Shanghai Lujiazui Finance and Trade Zone Development Co. (00932 CH ), a property developer, fell 1.2 cents, or 2.8 percent, to 41 U.S. cents. Zhejiang Southeast Electric Power Co. (900949 CH ), a power company, fell 0.6 cent, or 1.7 percent, to 34 U.S. cents. Guangdong Electric Power Development Co. (2539 CH ), a power producer, gained 3 cents, or 0.5 percent, to HK$6.40. |
