Daily Quommentary - Jan 22, 2001 - 09:04:31 HKT - QuamResearch
The sighs of relief could be heard worldwide. A strong rally on the US NASDAQ index has reverberated around the world. In Hong Kong it has even caused Richie Rich to smile, as Pacific Century CyberWorks improved another 37.5 cents on Friday to bring it to $4.625, a rise of 75 cents in these two days.
China Mobile, #041, was also relieved of pressure, and seems to be establishing a base at $40, as yet there seems to be a ceiling at around the $50 level, so for the time being it is locked in to the 40s. China Unicom, #762, also saw a ray of daylight as it surged 60 cents to $13.30. China Unicom has the advantage between them of having a smaller capital to service, and the larger swings to share prices. All it needs is the incentive, as despite all this there is no way that an investor could call either of these shares cheap.
And that is what becomes derisory of the rumour that as a means of getting rid of its less marketable PCCW holding it would swap it for shares in one of these companies. One's opinion of the directors of Cable and Wireless would take yet another knock if they were merely to swap one overpriced share for another overpriced share, albeit rather more marketable.
The US tech rally also spread into the sublime and the ridiculous in Hong Kong, with Tom.com, #8001, possibly or contentiously the most overpriced share in the Hong Kong markets, gaining nearly 25% to $2.50, and SUNeVision, #8008, a share for which some apology could be dreamt up, up 20% to $2.95. A chorus of the most implausible cheap priced stocks, Culturecom, #343, up 5 cents to 57 cents, eKong, #524, also up 5 cents to 47.5 cents, eNew Media, #128, up yet another 5 cents to 66 cents, ICG Asia, #715 and Next Media, #282 each up 3 cents to 41.5 cents and and 41 cents respectively gives testament the probability that this rally will not be long lasting, and that those hairy crabs still hung up in strings could use this opportunity to extricate themselves.
Tech shares across the board were celebrating the joyful moment, but still one must caution that this could well be temporary, and Auto Systems, #771, up 17.5 cents to $3.30, Comp and Tech, #48, up 62.5 cents to $4.325, and Vanda System, #757, all in the very competitive systems integrating field, selling computer systems, imply that this rally should not be long-lasting. Founder, #418, up 17.5 cents to $2.375 and Stone Elec, #409, up 12 cents to $1.36, moved in harmony, as usual, but with an even lesser portion of logic.
First Pacific, #142, gained 18.5 cents to $2.025 anticipating the overthrow of corrupt president Estrada, and the hatchet job happened after the stock market had closed, so one may expect emphoria on Monday in the Philippines, and this will act on this share, although Pangilinan is involved in one of the charges against Estrada, using cash, to increase the influence of his company.
Hutchison, #13, with its higher tech representation caught up its parent, Cheung Kong, #1, at $105, as Hutch moving by $4 to $104. Again a state that is unlikely to be long lasting. Johnson Elec, #179, with limited shares in public circulation rose another 80 cents to $13.05.
Properties were not left out, and SHK Props, #16, gained $3.50 to $84. Some optimists are now hoping that property prices would rise by up to 20% during this year and that the resultant higher asset values, and profits, could project these shares forward. Swire Properties, despite the Damocles Sword of the higher government land premium, was in an even better position to profit from it, and Swire A, #19, gained $5 to $57.25. (End)
quamnet.com |
