HK shares end slightly lower, PCCW outshines HSI
Thursday May 3, 5:26 AM EDT
money.iwon.com
(Updates with additional stock movement details)
By Tay Han Nee
HONG KONG, May 3 (Reuters) - Hong Kong shares closed slightly down on Thursday, pushed lower by losses on global banking giant HSBC Holdings (0005), but renewed confidence in technology stocks like telecoms giant Pacific Century Cyberworks (0008), kept the benchmark index off session lows.
The Hang Seng Index of 33 blue chips ended down 0.7 percent, or 96.1 points at 13,718.14, partially reversing some of Wednesday's 3.2 percent gain.
Turnover was moderate at HK$9.81 billion (US$1.26 billion). Losers beat gainers 270 to 238, with 240 issues unchanged.
HSBC, the biggest stock on the Hong Kong bourse by market capitalisation, slipped 3.96 percent to HK$97, after sliding nearly three percent in London following a report it would seek shareholder approval for a multi-billion share issue at its annual general meeting.
But analysts and the company played down the report, saying that this was normal practice.
PCCW shares ended up 9.09 percent at HK$3.00, a one month high, after some investors decided to return to the technology sector following four straight days of gains in U.S. tech stocks.
"The stock has been oversold in recent months and in view of future rises, investors are trying to get back into the game. It is likely to be able to break the HK$3.20 resistance level," said Herbert Lau, research director of Celestial Asia Securities.
HSBC weighed the HSI down by more than 144 points and has dropped 16.02 percent this year, underperforming the HSI which has fallen 9.12 percent.
Ripples from HSBC's fall were felt throughout the sector with HKCB (0655), one of Hong Kong's smallest banks, sinking 4.76 percent to HK$3.50. Hang Seng Bank (0011), the second largest Hong Kong listed bank by assets and a HSBC subsidiary, fell 0.28 percent to HK$90.50.
Some fund managers, however, predicted that in the medium to long term, the banking sector would pick up.
"We are very positive on the banking sector, because interest rates are expected to head further south. There is a lot of potential for the first and second tier banks," said Vincent Koo, director of Polaris Asset Management which oversees US$520 million worldwide.
"For the medium to long term, from a valuation standpoint, there will be some upside for the sector."
While technology stocks were mostly flat in Thursday trade, China Unicom (0762), the mainland's second largest mobile carrier, fell 2.48 percent to HK$11.80. The stock had soared 10.5 percent on Wednesday.
Analysts said concerns over the delay in signing contracts with CDMA (code division multiple access) suppliers dampened investors' appetite for its stock. China Unicom on Wednesday postponed signing contracts to buy CDMA equipment for wireless networks from foreign and Chinese suppliers.
Still, analysts remain bullish about its longer term prospects, due to rapid demand growth for mobile phone services in China.
©2001 Reuters Limited. |
