Hong Kong Stocks Decline as CyberWorks Drops to a Two-Year Low
By Yeong Choy Leng
Hong Kong, June 20 (Bloomberg) -- Hong Kong stocks fell as Pacific Century CyberWorks Ltd. slumped to a two-year low after a report said the city's largest telecommunications company may fire staff to cut losses.
China Mobile (Hong Kong) Ltd. and other telecommunications stocks added to loss on concern Oracle Corp.'s forecast of rising sales doesn't signal the end of the industry slowdown.
``U.S. corporate earnings haven't been stable,'' said Tammy Fung, who helps manage $200 million in Asian assets at Nikko Global Asset Management (H.K.) Ltd. ``So even though Oracle's results may be slightly ahead of estimates, it doesn't confirm an upward trend.''
The Hang Seng Index fell 214.95, or 1.6 percent, to 12,918.71. In the broader market, 215 stocks rose, 240 fell and 272 were unchanged. Trade at HK$7.7 billion ($987 million) was four-fifths the daily average for the past three months.
The following is a list of companies whose shares were active.
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, fell 10 cents, or 4.1 percent, to HK$2.325, the lowest since May 3, 1999. The company may fire some of its 16,000 staff, and 20 percent in some departments, the Sing Tao Daily reported, citing unidentified people.
Telecommunications stocks fell after the Nasdaq Composite Index pared its earlier 3.5 percent gain to close up 0.2 percent. China Mobile (Hong Kong) Ltd. (941 HK ), a unit of China's largest mobile telephone company, fell HK$1.10, or 2.7 percent, to HK$39.30. China Unicom Ltd. (762 HK ), a unit of China's second-largest telephone company, fell 20 cents, or 1.6 percent, to HK$12.60.
Some companies with businesses in Beijing extended gains on hopes the capital city may win the bid to host the 2008 Olympics. The International Olympic Committee last month said Beijing, Paris and Toronto all meet the criteria for hosting the 2008 Summer Games. It will announce its decision on July 13 in Moscow.
``The Special Olympic International President Timothy Shriver made some comments over the weekend which re-ignited hopes Beijing may win the bid,'' said Louis Wong, research director at Phillip Securities Ltd.
Beijing Enterprises Holdings Ltd. (392 HK ), which owns hotels and shopping malls in the city, extended yesterday's 4.4 percent, gaining 10 cents, or 1.1 percent, to HK$9.60. Beijing Capital International Airport Co. (694 HK ), which manages the city's airport, was unchanged at HK$2.325 after rising as much as 7.5 percent. It gained 9.4 percent yesterday.
Cathay Pacific Airways (293 HK ), Hong Kong's only long-haul airline, fell 30 cents, or 2.9 percent, to HK$10.05. The company's pilots voted to disrupt flights starting July 1, putting pressure on Cathay to reach an agreement with the union on work schedules.
China Petroleum & Chemical Corp. (386 HK ), the country's top oil refiner or Sinopec, rose 2 cents, or 1.4 percent, to HK$1.45 on hopes it may not need to sell more shares in Hong Kong and New York to qualify for a new listing in China. The Hong Kong Economic Times reported that Sinopec's shareholders have asked China's Ministry of Finance to exempt it from a new government regulation that requires state-controlled companies to reduce the government stake if they sell new shares. Sinopec plans to sell 10 billion yuan ($1.2 billion) worth of yuan-denominated shares in China this year.
China Resources Enterprise Ltd. (291 HK ), the Hong Kong-listed investment arm of China's foreign trade ministry, rose 50 cents, or 4.1 percent, to HK$12.85. The company said yesterday it may sell shares in the form of China depositary receipts to raise funds for acquisitions.
CNOOC Ltd. (883 HK ), China's third-biggest oil company, rose 45 cents, or 6.1 percent, to HK$7.80. The company said it has begun drilling for oil in the fields off Hainan Island that contain 61 million barrels of oil worth more than $1.7 billion at today's prices.
Guangnan (Holdings) Ltd. (1203 HK ), a China-backed food importer and distributor, was suspended from trading pending an announcement of ``price sensitive information.'' The company said it shut down all 39 supermarkets in Hong Kong, firing 500 staff. The stock yesterday rose 1 cent, or 2.6 percent, to 39.5 HK cents.
Guangzhou Investment Ltd. (123 HK ), a diversified investment company controlled by the municipal government of Guangzhou, rose 1 cent, or 1.2 percent, to 85 HK cents. The company said it will seek a separate listing of its paper plant unit in China's stock market. The parent, Yue Xiu Enterprises (Holding) Ltd. may inject its major property company into Guangzhou Investment.
Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, fell 75 cents, or 0.9 percent, to HK$80.50. Its port unit, Hutchison Port Holdings, assumed $113 million in debt as part of its purchase of a stake in the overseas unit of International Container Terminal Services Inc., the Philippines' biggest port operator.
New World China Land Ltd. (917 HK ), the mainland real estate arm of New World Development Co., rose 12.5 cents, or 3.4 percent, to HK$3.775. The company agreed to sell its entire 95 percent stake in two shopping malls in Hubei province to its parent for HK$408 million.
Sino Land Co. (83 HK ), a medium-sized developer, fell 10 cents, or 2.9 percent, to HK$3.35, erasing yesterday's 0.7 percent gain. Lend Lease Corp., Australia's largest property developer, bought a luxury development from Sino Land for HK$1.58 billion ($202.6 million), Ming Pao Daily said, citing unidentified people.
Tan Chong International Ltd. (693 HK ), Singapore's largest car distributor, rose 2 cents, or 1.8 percent, to HK$1.12 after being suspended in the past two days. The company said it received notification from its controlling shareholder that a petition had been filed to dissolve closely held Tan Chong Consolidated Sdn., which owns 45.3 percent of Tan Chong International.
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