H.K. Stocks Fall, Led by HSBC, SHKP on U.S. Rate Disappointment
By Yeong Choy Leng and Cathy Chan
Hong Kong, March 1 (Bloomberg) -- Hong Kong stocks fell for a fourth day, led by HSBC Holdings Plc, Sun Hung Kai Properties Ltd. and other developers after Federal Reserve Chairman Alan Greenspan disappointed investors when he gave no hint the central bank would cut interest rates this week.
The Hang Seng Index fell 202.98, or 1.4 percent, to 14,584.89, extending its 4.6 percent loss this week. In the broader market, 166 shares fell and 54 stocks rose, while 503 left unchanged.
Greenspan yesterday said the U.S. economy has performed better in the past two months than in late 2000, though the slowdown has ``yet to run its full course,'' he added.
``The rate cut hope diminished after Greenspan's remarks,'' said Norman Ho, a fund manager at Value Partners Ltd., who helps manage $130 million in Hong Kong and China. ``The market atmosphere will be a bit bearish.''
The following is a list of companies whose shares are active.
Banks and developers fell on disappointment U.S. and local interest rates won't be cut this week after Greenspan gave no indication the central bank would act before its next policy meeting on March 20. Lower rates help reduce companies' funding costs and encourage more property purchases.
HSBC Holdings Plc (5 HK ), the second worst performing stock in February among the top 60 stocks within the Hang Seng 100 Index, fell HK$1.00, or 1 percent, to HK$104. Hang Seng Bank Ltd. (11 HK ), an HSBC unit, fell HK$1, or 1.1 percent, to HK$91.75. Cheung Kong (Holdings) Ltd. (1 HK ), Hong Kong's biggest real estate developer, lost HK$1.25, or 1.3 percent, to HK$93.25 Sun Hung Kai Properties Ltd. (16 HK ), the second largest developer by market value, fell HK$1.25, or 1.4 percent, to HK$85.75.
Telecommunications and computer-related shares dropped after the Nasdaq Composite Index shed 2.5 percent, completing its third- worst month. Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, lost 5 cents, or 1.1 percent, to HK$4.40. Legend Holdings Ltd. (992 HK ), China's biggest computer maker, fell 10 cents, or 1.6 percent, to HK$6.30.
China stocks traded in Hong Kong, or H shares, fell for a second day, as investors dumped them in favor of domestic foreign currency-denominated B share counterparts. Prior to yesterday's 4.4 percent loss, H shares as a group rose 13 percent in nine days. China Petrochemical Corp., (386 HK ), the country's No. 1 oil refiner, lost 3 cents, or 2.4 percent, to HK$1.22. Nanjing Panda Electronics Co.'s Hong Kong-traded shares (553 HK ), a Chinese home appliance maker, fell 20 cents, or 6.9 percent, to HK$2.70.
Bank of East Asia Ltd. (23 HK ), Hong Kong's third largest publicly traded bank, dropped 40 cents, or 2.1 percent, to HK$18.90. The stock goes ex-dividend today, meaning investors who buy it from today are not entitled to its 45 cents final dividend payout.
China Mobile (Hong Kong) Ltd. (941 HK ), China's largest publicly traded mobile telephone company, fell HK$1.00, or 2.3 percent, to HK$41.70. The government approved the company's plan to provide free airtime to boost usage and retain customers. The new plan means China Mobile will charge high-volume users less each month.
CNOOC Ltd. (883 HK ), China's third-largest oil company, fell 20 cents, or 2.9 percent, to HK$6.80 after the stock yesterday surged 16 percent in its first day of trade in Hong Kong. Separately, CNOOC will retain its exclusive right to partner foreign companies to explore for oil and gas in offshore fields even after the country joins the World Trade Organization, the Xinhua news agency reported, citing Wei Liucheng, CNOOC Ltd.'s chairman and chief executive.
Dickson Concepts (International) Ltd. (113 HK ), a Hong Kong retailer, fell HK$1.00, or 1.1 percent, to HK$91.50. The company will fire half the staff at its shopping mall after previously cutting headcount by a quarter, the Hong Kong Economic Times reported, citing the company.
MTR Corp. (66 HK ) a government-backed subway operator, fell 5 HK cents, or 0.4 percent, to HK$14.30. The company is slated to report its 2000 earnings today after market close, its first result since the company went public last year. MTR estimates profit to rise 71 percent to HK$3.6 billion from last year, according to its listing document.
Wing Lung Bank Ltd. (96 HK ) rose 40 cents, or 1.2 percent, to HK$33.50. DBS Group Holdings Ltd., Singapore's biggest bank by assets, is in talks to increase its 10 percent stake in Wing Lung, an official at the mid-sized Hong Kong lender said.
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