Hong Kong Stocks May Fall; CyberWorks May Drop for a Fifth Day
By Yeong Choy Leng
Hong Kong, Jan. 16 (Bloomberg) -- Hong Kong stocks may fall, led by Pacific Century CyberWorks Ltd. as investors may sell the stock before shareholder Cable & Wireless Plc is allowed to sell half of its 14.9 percent stake next month.
The Hang Seng Index yesterday fell 1.66 to 15,293.76. The Hang Seng London Reference Index rose 0.1 percent to 15,304.65. CyberWorks, Hong Kong's largest telecommunications company, extend its 15 percent loss in the past four days, diving to a 17-month low.
China B shares, which foreigners can own, may fall. The Shanghai B-share index yesterday dropped 2.7 percent to 85.91. In Shenzhen, the B-share index lost 2.9 percent to 132.01.
The following is a list of companies whose shares may be active. Prices refer to yesterday's closing levels.
Hong Kong stocks:
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, may extend its 15 percent loss in the past four days. The stock yesterday staged its biggest one- day decline since Oct. 24, falling 35 cents, or 7.7 percent, to HK$4.20, its lowest since Aug. 23, 1999. Cable & Wireless Plc can sell up to 1.6 billion shares after mid-February as part of its sale of Cable & Wireless HKT Ltd. to Pacific Century CyberWorks Ltd.
Some airlines may fall on concern earnings will be crimped by high oil prices. Crude oil price rose to its highest in almost a month on expectations that Organization of Petroleum Exporting Countries this week will agree to cut production for the first time in two years in a bid to raise prices and protect government revenue. Cathay Pacific Airways (293 HK ), Hong Kong's only long-haul airline, fell 45 cents, or 3.6 percent, to HK$12.20. China Eastern Airlines Corp. (670 HK ), the country's third-biggest airline, fell 3 cents, or 2.4 percent, to HK$1.23.
Meanwhile, PetroChina Co. (857 HK ), the listed unit of China's largest oil company, may rise on expectations earnings will be boosted by high oil price. The stock rose 4 cents, or 3 percent, to HK$1.36.
Beijing Datang Power Generation Co. (991 HK ), a state-backed company that is one of China's biggest electricity generators, may fall. New World Infrastructure Ltd. denied it has held talks with CLP Holdings Ltd. about selling its stake in Beijing Datang Power Generation Co. to the utility, the South China Morning Post reported, citing an unnamed New World spokesman. The stock fell 10 cents, or 4.6 percent, to HK$2.075 after rising 7.4 percent Friday.
China Unicom Ltd. (762 HK Giordano International Ltd. (709 HK ), one of Asia's biggest fashion retailers, may be active. The company said it bought a long lease on a shop in a prime shopping district from Dairy Farm International Holdings Ltd. for HK$200 million ($25.6 million). The stock rose 17.5 cents, or 4.2 percent, to HK$4.375.
Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, may be active. The company may bid for the mobile business of Cable & Wireless Optus Ltd., Australia's second-biggest phone company, in conjunction with NTT DoCoMo, the Sydney Morning Herald reported, citing a note to investors by ABN Amro. The stock fell 25 cents, or 0.3 percent, to HK$97.
Li & Fung Ltd. (494 HK ), which buys clothing and goods in Asia on behalf of American retailers, may rise. Its unit, Convenience Retail Asia Ltd., priced its shares at the top of a proposed range, raising $24 million after receiving strong demand for the stock in its initial share sale. The stock rose 20 cents, or 1.4 percent, to HK$14.85.
Yue Yuen Industrial (Holdings) Ltd. (551 HK ) may rise. The company will probably say earnings rose 14 percent last year, reflecting strong demand for shoes it makes for Nike Inc., Reebok International Ltd. and New Balance Athletic Shoe Inc., the world's fastest-growing shoe brand by sales, according to 14 analysts polled by IBES International Inc. The company expects to release earnings after 4 p.m. today. The stock rose 30 cents, or 2.1 percent, to HK$14.50.
China B Shares:
China's B shares may fall as more traders were deterred by the securities regulator's crackdown on market manipulation from holding more shares. Yesterday, Shanghai's B share index fell 2.7 percent to 85.913. Shenzhen's B shares index fell 2.9 percent to 132.01.
Yesterday, China's Premier Zhu Rongji and the chairman of China's securities regulatory body both reiterated the government's pledge to step up its stock market supervision. Last week, the securities regulator started investigating Yorkpoint Science & Technology Co. and China Venture Capital Group on suspicion their share prices had been manipulated by inside traders.
``The crackdown is going to cause the market to slump in the near term as it scares off market traders and investors,'' said Yan Dinggong, an analyst at Shenyin Wanguo Securities Co. in Shanghai.
Tightly held stocks such as Shenzhen Zhongha Co. (2015 CH ) may fall, as they are likely to be the first to be under the regulators' scrutiny. Yorkpoint's shares have slumped 34 percent in four days after the regulator started its probe.
Appliance makers such as Konka Group Co. (2016 CH ) may be active, after the government said it will set aside 300 million yuan to help them survive a price war. Konka, which said its first-half profit slumped 41 percent last year, fell HK$0.05, or 1 percent, to HK$4.75. Shenzhen Huafa Electronics Co. (2020 CH ), which makes electrical appliances in southern China, lost HK$0.05, or 1.8 percent, to HK$2.77.
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