Hong Kong Stocks Mixed; SHK Properties Declines as HSBC Gains
By Yeong Choy Leng
Hong Kong, April 2 (Bloomberg) -- Hong Kong's key stock index fell, led by Sun Hung Kai Properties Ltd. as the city's second- largest property developer went ex-dividend, meaning investors who buy the stock from today onwards won't be entitled to its first- half payout of 55 HK cents.
Limiting losses, HSBC Holdings Plc rose on expectations it will announce plans tomorrow to boost revenue before the city's interest rate deregulation in July, when banks will need to compete for depositors by setting their own rates.
The stock also gained after U.S. peers such as Citigroup Inc. advanced on acquisition hopes.
``It's expected customers will have to pay to get banking services and HSBC may increase its fee income, which will be positive for its Hong Kong operations,'' said Eric Yuen, deputy head of research at Dao Heng Securities Ltd. ``The acquisition speculation in the U.S. will also drive up other international banks including HSBC.''
The Hang Seng Index fell 33.88, or 0.3 percent, to 12,726.76. In the broader market, 108 stocks rose, 86 fell and 531 were unchanged. Trade at HK$3.8 billion ($487 million) was two-fifths the full-day average for the past three months.
The following is a list of companies whose shares are active.
Sun Hung Kai Properties Ltd. (16 HK ), Hong Kong's second-largest real estate developer by market value, fell HK$1.75, or 2.4 percent, to HK$72.75. The company went ex- dividend, meaning investors who buy the stock today onwards won't be entitled to its first-half payout of 55 HK cents.
HSBC Holdings Plc (5 HK ), the U.K.-based parent of the city's two largest lenders, rose HK$0.75, or 0.8 percent, to HK$92.75. Citigroup Inc. and American Express Co. gained in the U.S. on a Business Week report that Citigroup is in talks to acquire American Express. A spokesman for American Express and a spokeswoman for Citigroup declined to comment.
Cathay Pacific Airways (293 HK ), Hong Kong's only long-haul airline, fell 5 cents, or 0.4 percent, to HK$11.30 after rising as much as 0.9 percent. The airline has joined Japan Airlines Co. and Singapore Airlines Ltd. to say that it's interested in Boeing Co.'s plans to develop a faster long-range plane by the end of the decade.
China Eastern Airlines Corp. (670 HK ), the country's third-biggest airline, was unchanged at HK$1.12 after falling as much as 3.6 percent and rising as much as 0.9 percent. The airline plans to replace all six of its McDonnell Douglas MD-11 planes with Airbus Industrie's A340-600 jets by 2003, the Shanghai Daily reported, citing airline's President Li Zhongming. The upgrade is part of its move to become one of the world's top 30 airlines in five years, said Li.
China Everbright Ltd. (165 HK ), which is controlled by China's State Council, rose 20 cents, or 3 percent, to HK$6.95. The company said profit tripled in 2000, boosted by a first-half sale of shares in China Mobile (Hong Kong) Ltd. Net income rose to HK$1.29 billion, in line with the HK$1.283 billion expected by five analysts in a Bloomberg News poll.
China Shipping Development Co. (1138 HK ) posted its biggest four-day gain in almost a year as the nation's biggest domestic cargo shipping company said it may sell shares to domestic investors. The stock rose 8 cents, or 6.7 percent, to HK$1.27, rounding off a 26 percent four-day gain, its biggest since May 16 last year. Component stocks in the Shanghai A-Share Index traded at 55 times earnings, compared with 14 times earnings for China Shipping's Hong Kong-listed shares. Separately, the company reported late Thursday 2000 profits more than doubled to 282 million yuan.
China Unicom Ltd. (762 HK ), a unit of China's second- largest telephone company, rose 35 cents, or 4.2 percent, to HK$8.75. Telstra Corp., Australia's dominant phone company, is negotiating with the China Unicom group to help it build wireless networks covering more than 200 Chinese cities, The Australian newspaper reported. Separately, the company is expected to report tomorrow 2000 profit rose 74 percent to 1.46 billion yuan, according to a Bloomberg News survey of seven analysts.
Lifetec Group Ltd. (1180 HK ), which is expanding into Chinese medicine, tumbled 3.5 cents, or 12 percent, to 26 HK cents. The stock was suspended from trading on Friday. Best Top Offshore Ltd., its major shareholder, is proposing to sell its 142 million Lifetec shares at 27.5 HK cents apiece, a 6.8 percent discount to Thursday's closing price. Best Top will subscribe for the same amount of new shares at the same price. Lifetec will raise about HK$33 million from the sale to finance the construction of a new drug production line.
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, was suspended from trading. Trading in its Singapore-listed parent, Pacific Century Regional Development Ltd., was also halted. Major shareholder, Cable & Wireless Plc, which owns a 14.9 percent stake in CyberWorks, plans to issue bonds or other derivatives convertible into CyberWorks shares, Ming Pao Daily said, citing unidentified people. The stock fell 17.5 cents, or 5.4 percent, to HK$3.075 on Friday.
Sunday Communications Ltd. (866 HK ), a Hong Kong mobile phone operator, fell 0.5 cents, or 1.2 percent, to 41.5 HK cents on concern over how it will raise funds to finance its network expansion plan. The Singapore government said the company is one of the four eligible to bid in an auction next month for four high-speed wireless telecommunications license in the island state. The stock also gained 5 percent in the past two days.
Sun Man Tai Holdings Co. (433 HK ), a small property developer, rose 0.5 cents, or 1.4 percent, to 37 HK cents. The company said it plans to spend 300 million yuan ($60.4 million) to 500 million yuan building serviced apartments along the Huangpu River in the Pudong district of Shanghai.
Television Broadcasts Ltd. (511 HK ), Hong Kong's dominant over-the-air broadcaster, fell HK$1.20, or 2.8 percent, to HK$41.40. The company said it may not proceed with a plan to start a pay television service in Hong Kong after a joint venture partner withdraw its pledge to invest. The stock was unchanged at HK$42.60.
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