MARKET TALK-HK: Macquarie Issues Call Wt On Everbright
Thursday, January 11 8:55 AM SGT
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)
0820 [Dow Jones] HK SHARES OVERNIGHT: Shares fell in London trading; U.K.-based HSI ended down 51 at 15385. Property companies fell on Sino Land's (0083) $783 million share placement; Sino Land lost 5 cents to $4.12, Hutchison (0013) fell 38 cents to $97.87 and SHK Properties (0016) down 25 cents at $80. HSBC lost 5 cents to $116, climbing down from recent highs. "It is all incredibly dull out there and not looking good at all," says one trader of Asian shares in London; "I can see it all drifting lower over the next week." In New York, ADRs mostly higher; China Mobile (0941) up 1.1% at US$29.06 (equivalent to HK$45.33); China Unicom (0762) up 0.8% at US$15.25 (equivalent to HK$11.90); HSBC (0005) down 0.1% to US$74.90 (equivalent to HK$116.84); Cheung Kong (0001) flat at US$13.35 (equivalent to HK$104.13); Hutchison up 0.4% at US$62.25 (equivalent to HK$97.11); Pacific Century CyberWorks (0008) down 2% at US$6.25 (equivalent to HK$4.88).(SMG,STT)
0810 [Dow Jones] WALL STREET: Nasdaq up despite another round of discouraging news about profit trends, suggesting recent selloff may have bottomed out; index up 3.4%. Chip stocks Altera and Xilinx up despite downbeat comments from Thomas Weisel. Cisco eased 2% after CIBC World Market cut stock to hold from buy on view it overvalued; company later said 2Q results could be unfavorable. Telephone equipment makers little changed after falling Tuesday on Nokia's weak handset sales. DJIA edged up 0.3%, with some profit-taking in stocks that might be hurt by severe economic slowdown. But some weakness in techs after-hours, with Yahoo! tumbling 19%; it met 4Q expectations but warned 2001 will be well below analysts' expectations on curbed spending on online advertising. Motorola little changed after-hours; 4Q earnings in line with lowered expectations and big drops in orders in chip and handset units.(RXM)
0800 [Dow Jones] OUTLOOK: 1000 HSBC (0005) media conference on outlook for Asian markets in 2001;
1245 Selina Chow, Chairman of HK Tourist Association, speech on strategy to promote HK as international tourist center; sponsored by HK General Chamber of Commerce;
1315 Anton van Gorp, CEO of now defunct adMart, luncheon speech on adMart; sponsored by American Chamber of Commerce;
1430 SSB Citi Asset Management media conference on equity investments;
1800 Far Eastern Economic Review and Deloitte Consulting joint presentation and discussion on e-Business Awards 2000.(STT)
[Questions and comments please to Stephanie Tam at (852) 2832-2346 or stephanie.tam@dowjones.com. Currency amounts are in Hong Kong dollars and time is local Hong Kong time.]
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