PCCW Tumbles for 2nd Day, Hurt by Downgrades, Uncertainties
Mar 30, 2001 - 11:22:04 HKT
Quamnet News Service
Pacific Century CyberWorks Ltd. (0008), Richard Li's Internet investment company, tumbled for a second day in the wake of its worse-than-expected full-year results.
At 11:11 a.m. local time, the stock was down 4.6 percent to HK$3.10. It was the second most heavily traded issue, with turnover of HK$105 million.
"Disappointing results, unclear outlook of global telecoms and uncertainties as to whether U.K. Cable & Wireless Plc can find a buyer for its PCCW stake, are all adding pressure to the stock," said Raymond Lam, deputy general manager of CM-CCS Securities Ltd. "The stock broke its psychological level of HK$4 two weeks ago and shareholders can only hope that it can sustain the HK$3 level."
Goldman Sachs said yesterday it initiated coverage of PCCW with a "market performer" rating. HSBC Securities downgraded the stock to "hold" from "buy" after its huge full-year loss.
The company posted a net loss of US$886 Mln for 2000, which included a provision of US$667 million. It now has total shareholder deficit of US$1.8 billion.
PCCW, the first blue chip company in Hong Kong history with a negative equity position, has lost 80 percent of its value since its merger with Cable & Wireless HKT, Hong Kong's largest phone company, on Aug. 17 last year.
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