H.K. Stocks Mixed; HSBC, Hutchison Slide as China Mobile Gains
By Cathy Chan
Hong Kong, March 5 (Bloomberg) -- Hong Kong's key stock index fell for a sixth day as HSBC Holdings Plc tracked declines in its U.K. shares on persistent concern about its earnings prospects this year.
Hutchison Whampoa Ltd. also dropped after shares of its Australian unit fell to a record low on concerns the company may lose its bid to acquire Cable & Wireless Optus Ltd.
Leaving the broader market mixed, China Mobile (Hong Kong) Ltd. rose after saying a plan to offer free calling time will only cut sales by a tenth in a ``worst case scenario'' and after the stock lost 16 percent in the past two days.
``The company's attempt to sooth investors' concern help a bit,'' said John Lo, an assistant director at BNP Prime Peregrine Ltd. ``The stock is oversold and the rise is technically-driven.''
The Hang Seng Index fell 29.40, or 0.2 percent, to 13,937.03. In the past six days, it's lost 8.8 percent. In the broader market, 255 shares fell, 122 rose and 346 were unchanged. Trade at HK$5.9 billion ($755 million) was about two-thirds of the full-day three-month average.
The following is a list of companies whose shares are active.
HSBC Holdings Plc (5 HK ) declined HK$1.50, or 1.5 percent, to HK$102. Since Feb. 23, the stock's lost 12 percent of its value on concern about its earnings prospects this year after it reported lower-than-expected income for 2000. Its U.K. shares tumbled 2.5 percent on Friday. The company also said its Brunei finance company bought IRB Finance Bhd. for $32.5 million in cash as it expands regionally.
Hutchison Whampoa Ltd. (13 HK ), the biggest Asian investor in Europe telecommunication market, fell HK$1.75, or 2 percent, to HK$86.75. Shares of its unit Hutchison Telecommunications (Australia) Ltd. fell to a record low after the Sydney Morning Herald said Singapore Telecommunications Ltd. most likely beat out Hutchison in the auction for Cable & Wireless Optus Ltd.
China Mobile (Hong Kong) Ltd. (941 HK ), China's largest mobile telephone company, gained HK$1, or 2.8 percent, to HK$36.90, after losing 16 percent in the past two days. The decline in average revenue per user will not be more than 10 percent ``in the worst-case scenario'' once the company starts providing free calling time to subscribers in late March, Chairman Wang Xiaochu told investors in a conference call on Friday.
China Unicom Ltd., the country's No. 2 wireless company, also gained 25 cents, or 2.5 percent, to HK$10.35. The stock tumbled 11 percent last Friday, its lowest since its June listing, after the company said it will ``soon'' match China Mobile's offer.
China-backed investment companies rose. Regulators may allow these so-called ``red chips'' to sell foreign-currency denominated B shares in China, the Hong Kong Economic Times reported. Hong Kong Exchange & Clearing Ltd. has already hired consultants to study a plan to let red chips sell depository receipts in the mainland, the paper said. Such a move would enable red chips to tap a larger investment pool after the government last month allowed Chinese citizens to buy B shares without restrictions.
China Resources Enterprise Ltd. (291 HK ) gained 10 cents, or 0.9 percent, to HK$11.45. China Merchant Holdings International Co. (144 HK ), controlled by China's transport ministry, rose 20 cents, or 3.4 percent, to HK$6.10.
Cathay Pacific Airways (293 HK ), Hong Kong's dominant carrier, rose 10 cents, or 0.9 percent, to HK$11.50 before it announces 2000 profit on Wednesday. The company is poised to report profit more than doubled to HK$4.95 billion because of increased demand and higher fare prices due to a region- wide capacity shortage, according to an average of seven analysts surveyed by Bloomberg News.
Legend Holdings Ltd. (992 HK ), China's biggest personal computer maker, fell 5 cents, or 0.9 percent, to HK$5.55. The company gained as much as 4.5 percent after saying it plans to sell shares in an unspecified holding unit. Alice Li, a Legend spokeswoman, said it will announce details about the restructuring before reporting 2000 earnings in May. The Oriental Daily News last week reported Legend may raise $100 million by selling shares in its Digital China unit in Hong Kong and on the Nasdaq Stock Market, citing unidentified people.
Pacific Century CyberWorks Ltd. (8 HK ), Richard Li's Internet and telecommunication venture, fell 15 cents, or 3.5 percent, to HK$4.175. The stock took its cue from U.S. counterparts after the Nasdaq Composite Index fell 3 percent on Friday, completing its fifth-straight losing week.
Wing Lung Bank Ltd. (96 HK ), a mid-sized Hong Kong lender, lost HK$1.90, or 5.2 percent, to HK$34.70 after denying it's in talks with DBS Group Holdings Ltd. The South China Morning Post last week reported, citing a statement from Wing Lung, that Singapore's biggest bank by assets may increase its 10 percent stake in the bank.
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