H.K. Stocks to Open Down, Hurt by Global Telecoms Slump
Feb 19, 2001 - 09:50:24 HKT
Quamnet News Service
Hong Kong stocks are expected to open lower Monday as telecoms will come under pressure after the slump of global telecoms last Friday.
"Our market will head south today, dragged down by local telecoms which are likely to follow the falls of telecoms in overseas markets," said Mark Wan, research manager of Tanrich (H.K.) Holdings Ltd. "PCCW may fall to HK$4.50 because C&W has not yet found a buyer for the PCCW shares."
People are watching when and to whom Cable & Wireless Plc will sell its 7.5-percent stake in Pacific Century CyberWorks (0008) as a lock-up period had already expired on Feb. 17.
Properties should outshine the broader market as the results of today's government land auctions should not be disappointing, but that doesn't mean the HSI can be cushioned from a fall, Wan added.
He said he expects the benchmark Hang Seng Index to move from 15,400 to 15,700 today.
The HSI ended last Friday down 126.06 points or 0.8 percent at 15,630.31 on turnover of HK$7.09 billion. The index ended the week down 242.86 points or 1.23 percent.
The Nasdaq Composite Index dropped 127.53 points, or 5 percent, to 2,425.38 last Friday, snapping a two-day advance to finish the week down 45 points, or 1.8 percent. The Dow Jones Industrial Average fell 91.20, or 0.8 percent, to 10,799.82, but ended the week up about 18 points. The Standard & Poor's 500-stock index fell 25.08, or 1.9 percent, to 1,301.53.
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