HK stocks flat in early trade, Cathay steady
Tuesday August 7, 10:38 PM EDT
HONG KONG, Aug 8 (Reuters) - Hong Kong stocks were steady in early Wednesday trade, with banking giant HSBC Holdings (0005) extending recent gains.
But losses in key technology stocks following weak earnings from Cisco Systems (CSCO) kept most other blue chips in check.
The Hang Seng Index (HSI) was down 0.08 percent at 11,996.27, just below the psychologically important 12,000 level. The index fell to 11,925 on Tuesday, its lowest level since April 1999.
HSBC stock, the biggest stock on the Hang Seng Index by market capitalisation, was up 1.1 percent at HK$92, adding to a 0.55 percent gain on Tuesday after it reported interim earnings that were slightly better than analysts' expectations.
Among technology stocks suffering early losses were mainland China's number two cellular phone operator China Unicom (0762), and the operator of Hong Kong's dominant phone utility Pacific Century CyberWorks (0008), down 2.02 percent at HK$12.10 and 1.04 percent at HK$1.90, respectively.
Shares of Hong Kong's dominant airline Cathay Pacific (0293) were unchanged at HK$10.10 ahead of the release of its first half earnings, expected at around midday.
Analysts are expecting up to a 37 percent drop in interim earnings as the airline suffers the effects of a global economic slowdown on its cargo and passenger businesses.
The stock is one of the worst performing issues on the Hang Seng Index in 2001 so far.
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