Hang Seng Index Seen Opening Below 12,800, Telecoms Lead
Jul 09, 2001 - 09:45:57 HKT
Quamnet News Service
Hong Kong stocks are expected to open sharply lower after a wave of corporate profit warnings from EMC Corp., Advanced Micro Devices and others swamped the U.S. market.
"The local market is likely to open below 12,800, tracking recent falls in the U.S. market on profit warnings," said Caster Pang, assistant manager of Tingkong-RexCapital Securities International Ltd.
He reckons that the blue-chip index will move between 12,700 and 12,900 with stronger support at 12,500 to 12,600.
"Telecoms plays are under selling pressure today, after sharp declines in telecoms stocks across the U.S. and Europe," he said. Pang expects China Mobile (Hong Kong) Ltd. (0941) to fall below HK$40 at the open. China Mobile ended last Thursday at HK$40.80.
The HSI fell 208.05 points, or 1.58 percent, at 12,999.48 last Thursday. It was closed on Friday due to the onset of Typhoon Utor.
The Dow Jones Industrial Average tumbled 227.18 points, or 2.17 percent, to 10,252.68 on Friday. The Nasdaq Composite Index fell dropped 75.95 points, or 3.65 percent, to 2,004.16. The Standard & Poor's 500 Index moved lower 28.65 points, or 2.35 percent, to 1,190.59. |
