Hong Kong Stocks Rise, Led by CyberWorks, Hongkong Electric
By Yeong Choy Leng
Hong Kong, Feb. 7 (Bloomberg) -- Hong Kong stocks rose for a second day, led by Pacific Century CyberWorks Ltd. after a report fueled hopes shareholder Cable & Wireless Plc found a buyer for its 7.5 percent stake in CyberWorks.
``It'll be positive for CyberWorks as long as someone is willing to buy the stock and hold it because people had been concerned that C&W will sell them to the public which will put pressure on the stock,'' said Kelvin Cheng, a technology analyst at Daiwa Institute of Research.
Hongkong Electric Holdings Ltd. and other utility companies added to gains as investors switched into stocks that offer steady earnings on concern the U.S. economic slide will lead to a global slowdown.
The Hang Seng Index rose 136.23, or 0.9 percent, to 16,049.47, extending yesterday's 0.5 percent gain. In the broader market, 241 stocks fell, 214 rose and 267 were unchanged. Trade at HK$7.1 billion ($913 million) was four-fifths the average for the past three months.
China B shares, which foreigners can own, extended declines, weighed down by losses in their A share counterparts that are reserved for Chinese citizens. Investor are concerned demand for stocks will fall as the country's securities regulator steps up investigations on alleged stock market malpractices.
``In the short term, we expect some negative impact, because people will want to take back their money and watch what happens with the crackdown,'' said Queenie Chung, an assistant portfolio manager at Long Investment Management Ltd. in Hong Kong.
Shanghai's B share fell 0.5, or 0.6 percent to 82.54. The Shenzhen B share index fell 0.8, or 0.6 percent, to 130.17.
The following is a list of companies whose shares were active.
Hong Kong stocks:
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, rose 5 cents, or 1.1 percent, to HK$4.675. Shareholder Cable & Wireless Plc is in talks with Telecom Italia SpA and Alcatel SA to sell its 15 percent stake in CyberWorks, the Ming Pao Daily reported, citing unidentified sources. C&W is also in talks with an unidentified U.S. company about the possible sale, the paper said.
Utility stocks rose as investors switched into these stocks that offer steady earnings. Hongkong Electric Holdings Ltd. (6 HK ), which supplies electricity to Hong Kong Island, gained HK$1.20, or 4.2 percent, to HK$29.60. CLP Holdings Ltd. (2 HK ), Hong Kong's biggest electricity company, rose 50 cents, or 1.3 percent, to HK$38.70. Hong Kong & China Gas Co. (3 HK ), a unit of Henderson Investment Ltd., rose 15 cents, or 1.3 percent, to HK$11.40.
Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, rose HK$1.50, or 1.5 percent, to HK$101.50 on expectations its $1.5 billion of bonds sale will receive strong interest. The company, which started marketing its bond sale yesterday, is expected to benefit from renewed demand among investors for fixed-income securities as prices rise.
``The bond sale is likely to go well and this is positive for the share price'' given that telecommunications companies are now facing difficulties in raising funds, said Alex Tang, research director at Core Pacific-Yamaichi International Ltd. in Hong Kong.
China Petroleum & Chemical Corp. (386 HK ), or Sinopec, fell 4 cents, or 3.6 percent, to HK$1.07. Sinopec, China's biggest oil refiner, denied the Chinese government will force it to sell half its stake in oil production unit Sinopec Star Petroleum Co. to rival China National Offshore Oil Corp. The Chinese government has given CNOOC the option to buy 50 percent of Sinopec Star, according to a report on Reuters' Website, which cited an unnamed company official quoting CNOOC executive director Fu Chengyu. Sinopec Star and CNOOC are both drilling for oil and gas in the East China Sea.
Hongkong Electric Holdings Ltd. (6 HK ), the smaller of the city's two electricity suppliers, rose HK$1.20, or 4.2 percent, to HK$29.60. The company is ``very interested'' in acquiring power plants supplying major European cities and Singapore, Ming Pao Daily reported on Jan. 31, citing an analyst report from UBS Warburg. The company could not be reached for immediate comment.
TravelSky Technology Ltd. (696 HK ), China's state- owned air travel reservations system, rose 67.5 cents, or 16 percent, to HK$4.775 on its first day of trade as investors, who failed to get the shares during the company's initial share sale, bought the stock now. The company sold 270.32 million shares at HK$4.10 each, at the higher end of a proposed range to investors. Investors in Hong Kong applied for 7 times the number of shares they were offered, TravelSky said in a statement. Investors globally applied for about 8 times the offered amount, bankers involved in the transaction said.
Zhejiang Expressway Co. (576 HK ), a Chinese toll road operator, extended its 13 percent gain in the past four days, rising 1 cents, or 0.7 percent, to HK$1.36. The company said it plans to pay 485 million yuan in cash for an 18.4 percent stake in Zhejiang Shangsan Expressway Co. The purchase ``will lead to additional traffic volume to the expressways currently owned and operated by the company,'' said the company.
China B shares:
Shares fell on concern a government crackdown on market manipulation will sap demand for stocks. Eastern Communications Co. (900941 CH ) fell, weighed down by declines in their A share counterparts, which only Chinese citizens are allowed to trade. Eastern's A shares fell almost 1.1 percent to 26 yuan as investors dumped their shares on concern the securities regulator's investigation of stock market malpractice may expand and involve more stocks. The decline weighed on Eastern's B shares, which fell 2.4 U.S. cents, or 2.3 percent, to US$1.02.
The decline also weighed on other B shares such as Zhejiang Southeast Electric Power CO. (900949 CH ), the largest stock on the Shanghai B shares index, which fell 0.6 U.S. cent, or 1.4 percent, to 41.2 U.S. cents. Shanghai Vacuum Electron Devices Co. (900901 CH ), the eighth-biggest stock on the Shanghai B shares index, fell 1.5 U.S. cent, or 2.8 percent, to 53 U.S. cents.
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