MARKET TALK-HK: USD-HKD Lower, Outflow Fears Ease
Thursday, January 11 8:57 AM SGT
0857 [Dow Jones] USD/HKD touch lower at 7.7998 vs 7.7999 late yesterday, and HK trader says fears of HKD outflow from banking system aren't realistic; while arbitrage USD-buying occurring, amount of funds involved not large.(EAR)
0856 [Dow Jones] China 2000 trade data underscores need for Beijing to find other growth drivers this year. Exports jumped 27.8% but faster-growing imports narrowed trade surplus 17% from 1999 to $24.1 billion. Export growth well off June high of 45% on-year and likely to lose more steam; Merrill Lynch economist Guonan Ma predicts slowing to 8% in 2001 "under the weight of slowing global demand, weakening regional currencies, and possibly diminished tax incentive for exports."(JRD)
0855 [Dow Jones] Macquarie yesterday issued 6-month European call warrant on China Everbright Ltd (0165). Strike price set at $8.05, or 90% of stock's closing price yesterday; warrant (10-for-1) priced at 25.1 cents, hence gearing of 3.57X. Another opportunistic issue to take advantage of enthusiasm in China related stocks, say traders.(IVW)
0852 [Dow Jones] Despite rosy FY00 earnings forecast by some analysts, China's third largest oil company CNOOC's imminent IPO unlikely to receive strong interest, says equity salesperson at European investment bank; notes its upstream-focused operations likely plagued by expected fall in oil prices. According to various brokerages, FY01 net profit expected to fall about 30% on-year after more than doubling in FY00 as oil prices ease. CNOOC will be dual listed in HK and New York in February.(STT)
0846 [Dow Jones] Short-selling turnover down 31.2% at $207 million yesterday; number of stocks shorted unchanged at 34. Telcos most active; China Mobile (0941) with $42.9 million worth of shares shorted, Pacific Century CyberWorks (0008) with $25.1 million and Hutchison Whampoa (0013) with $20.3 million.(IVW)
0844 [Dow Jones] Listing candidate CNOOC expected to report FY00 net profit of US$1.36 billion vs FY99's US$497 million, says Merrill Lynch, one of arrangers of its share offering, thanks to price and volume improvement as well as cost controls. However adds FY01 net profit will fall slightly to US$959 million as income tax rate will effectively double in 2001 due to expiry of China's tax incentive program. CNOOC, China's largest offshore oil producer and natural gas producer, aims to raise US$1.1-US$1.4 billion by selling 1.64 billion shares ahead of dual-listing in HK and New York next month.(SMG)
0839 [Dow Jones] First Pacific's (0142) major shareholder Salims of Indonesia has sold almost US$31 million worth of shares in conglomerate, says unsourced South China Morning Post report without giving timeframe; says transaction done through ING Barings, with shares sold at $2 apiece, or 18% discount to yesterday's close at $2.45. Report says Salims, which holds about 30% of First Pacific, ready to slash stake. Likely disposal will weigh on shares but stock not expected to fall much after recent speculation of share disposal. First Pacific officials unavailable for comments.(STT)
0829 [Dow Jones] Electronic manufacturing service provider Sinotronics Holdings plans to raise $67.2 million from flotation on GEM, underwriting source told Dow Jones late yesterday. With all 84 million shares placed with institutional investors at proposed price of 60-80 cents, Fujian-based company expected to witness little volatility when trading begins in early February.(STT)
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