Evening Wrap: Local Punters Dump Their Mobile Phones on Wall Street Panic
Apr 04, 2001 - 19:24:20 HKT
QuamResearch
Three...Two...One...Go! "I go first, I am the biggest," said China Mobile (0941). "Hey, wait for me, where is Richard" said China Unicom (0762). "I am here, but I need a break as one-third of my capitalization has already evaporated in the past few days," said PCCW (8). This is just our conjecture but it should be more or less the case if these counters were able to speak. Under the shadow of the Wall Street panic last night where DJIA lost 292 points to 9,486 and the IT barometer NASDAQ Index, plunged 110 points or 6.2% to 1,673. Responding to the Wall Street panic, local punters tried to cash out by dumping their shares regardless of the investment values. HSI plummeted 520 points or 4.14% to 12,063, the lowest since 19 October, 1999. Turnover remained lukewarm and ended with HK$7.84 billion, up from yesterday's HK$7 billion.
Techs / Telcos
The HSI is not alone as most telecom operators reached their year-low in today's selling swirl. China Mobile (0941) declined 9.7 percent to HK$29.70, a new 52-week low. PCCW (8) lost another 12.5 cents to HK$2.6 after yesterday's 11.4% tumble. China Unicom (0762) hit an all-time low of HK$7.85, down 8.2 percent, despite its encouraging results announced yesterday. We project Unicom to earn RMB5.1 billion in the coming year giving a prospective P/E of 20x. This time we agree with MSDW that this counter seems to fall in an attractive level though appears somewhat speculative. SmarTone (0315) also found its new low at HK$8.4, down from yesterday's HK$9.1, giving a accumulating lost of 13.9% in three days. Hutchison (0013) broke the HK$80 psychological level and closed HK$3 or 3.7% lower at HK$78.25. Small operator, Sunday (0866), appeared substantial by edging down 5 cents to 41.5 cents.
Banks / Financials
Banks were almost paying back their gains yesterday with the HS Finance sub-index dropped 451 points to 19,045. HSBC (0005) continued to drop and lost HK$2.25 to HK$89.75. Perhaps, investors are not content with the company's decision to impose charges on small clients and responded violently by dumping its shares. Hang Seng (0011) which gained HK$2.25 yesterday paid back HK$2 to HK$90. Dah Sing (0440) lost HK$2.4 to HK$35.6, East Asia (0023) fell 50 cents to HK$16.95, Wing Lung Bank (0096) dropped 60 cents to HK$32.6 and Wing Hang Bank (0302) lost 65 cents to HK$23.65. In opposition to the market sentiment, Dao Heng Bank (0223) countered its comrades by gaining HK$1 to HK$37.6, on rumors that there will be a restructuring inside the Guoco Group (0053).
Properties
Properties lost ground with the country top two developers Cheung Kong (0001) and Sun Hung Kai (0016) both fell 2.4% to HK$80.50 and HK$71.50 respectively. Henderson Land (0012) cut another HK$1.7 to HK$36.5 and Sino Land (0083) fell 4.5% to HK$3.25. Rent collectors were unable to escape in the fall as Hysan (0014) and Swire (0019) lost HK$2 and 60 cents to HK$47.1 and HK$10.45 respectively.
Utilities
Utilities were mixed with CLP (0002) declined 60 cents to HK$41.1 but HK Gas (0003) rose 5 cents to HK$10.9 and HK Electric (0006) climbed 30 cents to HK$27.95.
China Concepts
H shares were no longer winners in the weak market as most of them continued yesterday's declining. Even some cheap power plays and expressways were under pressure. Shandong Power (1071) fell 7 cents to HK$1.47, Zheijiang Expressway (0576) and Jiangsu Expressway (0177) both dropped 4 cents to HK$1.47 and HK$1.45 respectively.
Old red chips such as China Resources (0291), Shanghai Industrial (0363), China Merchants (0144), China Everbright (0165), and China Travel (0308), all fell to different extent on consolidation and uncertainties about the Sino-U.S. relationship due to the plane collision issue.
Oil issues lost ground. PetroChina Co. (0857), China's No. 1 oil producer, fell 1.5 percent to HK$1.35. Refining giant China Petroleum & Chemical Corp. (0386) shed 3.2 percent to HK$1.20. CNOOC Ltd. (0883), the nation's largest offshore oil producer, was 3.8 percent lower at HK$6.30.
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