Hong Kong Stocks Rise for a 2nd Day, Led by China Mobile, HSBC
By Yeong Choy Leng
Hong Kong, Dec. 11 (Bloomberg) -- Hong Kong stocks rose for a second day, led by China Mobile (Hong Kong) Ltd., other telecommunications and computer-related stocks after the Nasdaq Composite Index surged 6 percent, improving the industry's outlook.
Adding to gains, banks such as HSBC Holdings Plc and property developers rose after a U.S. government report on Friday boosted optimism the Federal Reserve will cut interest rates next year.
``The job report showed a decline in economic activities, I do believe the next Fed move will be a downward adjustment,'' said Violet Chong, who helps invest $1.5 billion in Asia for Skandia Asset Management in Hong Kong.
The Hang Seng Index rose 159.68, or 1.1 percent, to 15,349.01. In the broader market, 181 stocks rose, 159 fell and 376 were unchanged. Midday trade at HK$6.3 ($807 million) was two- thirds the full-day average for the past three months.
The Nasdaq rallied as a surge in Intel Corp. even after it forecast lower sales helped convince investors that share prices have fallen far enough to reflect slowing profit growth. The Dow Jones Industrial Average rose 0.9 percent after a U.S. report showed the economy added fewer jobs than expected in November.
China B shares that foreigners can own fell. The Shanghai B- share index fell 1.2 percent to 76.00. In Shenzhen the B-share index dropped 0.3 percent to 121.02.
The following is a list of companies whose shares are active.
Hong Kong stocks:
Telecommunications and computer-related stocks rose along with their U.S. counterparts. China Mobile (Hong Kong) Ltd. (941 HK ), China's No. 1 publicly traded mobile telephone company, rose 70 cents, or 1.5 percent, to HK$47.30. Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, rose HK$3, or 3.1 percent, to HK$101.
Banks and property developers rose on expectations U.S. and local rates will fall. Hong Kong rates follow U.S. rates due to the currency peg. Lower rates reduce the cost of funding and encourage borrowings. HSBC Holdings Plc (5 HK ), the U.K.- based parent of the city's two largest lenders, rose 50 cents, or 0.4 percent, to HK$115. Hang Seng Bank Ltd. (11 HK ), Hong Kong's second-largest bank, rose HK$3, or 3.1 percent, to HK$98.75. Sun Hung Kai Properties Ltd. (16 HK ), Hong Kong's second-largest real estate developer by market value, rose 1.75, or 2.5 percent, to HK$72.
Cheung Kong (Holdings) Ltd. (1 HK ), Hong Kong's biggest real estate developer, fell 75 cents, or 0.8 percent, to HK$98. The stock fell after Morgan Stanley Capital International Inc. made no mention of reinstating the stock to its indexes as expected. The stock staged its biggest four-day rally in half a year on Friday, bringing its gains in the past four days to 12 percent. ``There was speculation Cheung Kong will be included so the stock is subjected to profit-taking,'' said Ben Kwong, a director at KGI Asia Ltd.
iRegent Group Ltd. (575 HK ), Hong Kong's listed fund manager, fell 3 cents, or 5.6 percent, to 51 HK cents. The company's chairman, James Mellon, failed to appear for a 10 a.m. summons from Seoul prosecutors, who want to question him in relation to alleged stock price manipulation involving the group's Korean affiliates.
Johnson Electric Holdings Ltd. (179 HK ), the world's second-largest maker of small electric motors, fell 50 cents, or 3.9 percent, to HK$12.50. The company said first-half earnings rose a less-than-expected 22 percent to $80.3 million. Five analysts in a Bloomberg News survey forecast a profit of $83 million.
Pacific Century CyberWorks Ltd. (8 HK ), Asia's second-largest Internet company, rose 5 cents, or 0.9 percent, to HK$5.90. ILink.net Holdings Ltd., a data center unit 41 percent- owned by CyberWorks, plans to raise as much as HK$400 million ($51.3 million) by selling shares and listing on the Growth Enterprise Market in Hong Kong, the Oriental Daily News reported, citing unidentified people. Separately, Telstra Corp., Australia's biggest phone carrier, has entered into an agreement over digital TV with CyberWorks, The Australian newspaper reported.
China B shares:
Some domestic investors are expected to sell part of their stock holdings to raise money for new share sales. Four Chinese state-owned companies, including Beijing Orient Electronics Group Co., Fushun Special Steel Co., Tibet Summit Industrial Co. and Qingdao AUCMA Co. plan to raise a combined 2.3 billion yuan ($277 million) by selling shares for the first time to domestic investors. About 114 companies raised a total of 61 billion yuan from initial share sales in the first 11 months of this year, compared with 98 companies raising 54 billion yuan for the whole of 1999.
Bengang Steel Plates Co. (2761 CH ), a steel producer, fell 4 cents, or 2.2 percent, to HK$1.77. Steelmakers' earnings growth are expected to slow next year amid declining prices worldwide, according to a report by China International Capital Corp.
Inner Mongolia Eerduosi Cashmere Products Co. (900936 CH ), China's biggest cashmere producer, fell 0.8 cent, or 1.7 percent, to 46 U.S. cents, on concern the first warmest weather in Shanghai in 12 years may reduce demand for the company's sweaters.
Shanghai Tyre & Rubber Co. (900909 CH ), China's largest maker of radial tires, fell 1.2 cents, or 3.4 percent, to 34 U.S. cents. Its main customer Shanghai Volkswagen Automotive Co. said its Santana and Passat car sales dropped 7 percent in the first 10 months of this year to 173,460 units from a year earlier, according to the Shanghai Daily.
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