Hong Kong shares lower on NASDAQ falls China plays remain weak
2001-05-31
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Share prices were generally lower in midmorning
trade, with telecom and tech stocks among the worst performers after a poor
overnight performance on the NASDAQ, dealers said.
Red chips and H shares were also lower amid continued profit-taking, though
utilities were fairly steady on the back of safe haven buying, they added.
At 10:50 am, the Hang Seng Index was down 167.20 points at 13,462.41 on
turnover of 2.43 bln hkd.
The Hang Seng May contract last traded at 13,440 points.
The Hang Seng China Enterprises Index was down 17.12 points at 525.43 and
the CAC Index down 33.19 points at 1,281.97.
TraHK lost 0.15 to 13.55 hkd.
The GEM index was down 3.99 points at 288.13 on turnover of 116.21 mln hkd.
MTR Corp was down 0.20 at 14.20 hkd.
Alex Tang, head of research with Core Pacific Yamaichi International, said
the NASDAQ losses, coupled with a profit warning issued by Sun Microsystems,
weighed heavily on the Hong Kong market.
Tang said telecom and other high tech stocks were particularly weak this
morning.
China Mobile fell 1.10 to 38.90 hkd and China Unicom shed 0.15 to 13.00.
Hutchison Whampoa lost 0.75 to 85.75 and Pacific Century CyberWorks fell
0.025 to 2.60.
Legend lost 0.15 to 5.50, Founder shed 0.10 to 2.075 and ASM Pacific fell
0.15 to 15.75.
On the GEM board, tom.com fell 0.10 to 2.35 and Sunevision shed 0.08 to 1.
97, while hongkong.com lost 0.02 to 0.47.
"But, I still expect bargain hunters will emerge later today to take
advantage of cheap valuations amid the current consolidation," Tang said.
Tang said the global economy is expected to benefit from the many interest
rate cuts seen since the beginning of this year and improving economic
fundamentals suggest further stockmarket gains are in the pipeline.
HSBC fell 0.05 to 98.00 and Hang Seng Bank lost 0.50 to 87.25.
Cheung Kong fell 1.50 to 88.75, Sun Hung Kai Properties lost 0.75 to 74. 25,
Henderson Land shed 0.20 to 37.00 and New World Development fell 0.15 to 10.05.
fh/jr
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At 11:22 am, the Hang Seng China Enterprises Index was down 24.34 points at
518.21 and the Hang Seng CAC Index down 47.77 points at 1267.39.
The Hang Seng Index was down 201.25 points at 13,428.38 on turnover of 3. 74
bln hkd.
The head of China research with a U.S. brokerage said the current
consolidation amid red chips and H shares has presented good buying
opportunities.
"The sector has outperformed the broader market on the back of bettereconomic foundamentals in China. So far, such an advantage remains in place,"
the analyst said.
"I think after the profit-taking, these China plays will resume their
upside. The momentum is still there," the analyst said.
Beijing Airport fell 0.175 to 2.05 hkd and Guangzhou Shipping shed 0.08 to
1.35.
Qingling Motors lost 0.14 to 1.96 and Beijing Datang fell 0.20 to 2.875.
Shanghai Industrial fell 0.45 to 14.10 after the company said it has repeat
edly expressed interest to Chinese authorities to issue China depository
receipts.
China Resources Beijing Land lost 0.20 to 2.20 Land and COSCO Pacific shed
0.25 to 5.30.
The analyst said the market has seen fund inflows from the mainland to buy
red chips and H shares.
"Liquidity remains adequate. The Chinese money is expected to continue to
buy Hong Kong's China plays whose valuations are lower than those of A and B
shares," the analyst said.
Tang of Core Pacific-Yamaichi International agreed, saying as long as
China's A and B shares stabilise, Hong Kong's China plays are likely to make a
turnaround.
Meanwhile, Tang said utility stocks appeared stable this morning amid the
current volatility.
CLP Holdings rose 0.30 to 32.60 and Hong Kong and China Gas was unchanged
at 9.25, while Hongkong Electric fell 0.15 to 27.85.
fh/jr
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