HK shares rebound, led higher by utilities, banks

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By Rita Chang

HONG KONG, Dec 18 (Reuters) - Hong Kong stocks found a
toehold on Tuesday after falling for four straight sessions, as
investors sought safe havens in utility stocks and HSBC Holdings
plc (0005.HK) tracked regional financials higher.

New issue Pacific Online Ltd (0543.HK), a mainland Chinese
Internet content provider, ended below its offering price in its
first day of trade, the latest in a recent string of IPOs that
has suffered in a cautious market.

Following a choppy morning session that saw the market lose
nearly 2 percent, the benchmark Hang Seng Index .HSI managed to
close up 0.5 percent, or 136.29 points, to end at 26,732.87.

The China Enterprises index of H shares .HSCE, or Hong
Kong-listed shares in mainland companies, gained 0.4 percent, or
58.08 points, to 15,449.47.

Mainboard turnover was HK$103.4 billion (US$13.3 billion)
compared to Monday's HK$104.4 billion.

"We're recovering from oversold conditions, but of course,
people aren't too aggressive," said Alex Wong, director at Ample
Finance Group.

"I think there is room for more upside. Many companies in
Hong Kong are not affected by subprime and most of the selling
that we've seen, related to risk reduction and year-end
rebalancing, should subside. So, we should stablilise."

HSBC gained 0.8 percent to HK$131.8 and Bank of East Asia
(0023.HK) rose 2.7 percent to HK$48.30.

Hong Kong Electric (0006.HK) surged 6.1 percent to HK$42.1.
Hong Kong and China Gas (0003.HK) jumped nearly 5 percent to
HK$22.65. Some attributed the sector's outperformance to
speculation that tariff hikes were on the near-term horizon.

Aluminum Corp of China (Chalco) (2600.HK), the country's top
alumina producer, declined 2.3 percent to HK$15.26. The company
raised its spot alumina price by 10.5 percent after Chinese
alumina prices rose 10 percent this month [ID:nPEK333738].

Pacific Online finished at HK$2.66, 19 percent lower than its
IPO price of HK$3.3 per share, although earlier it traded as high
as HK$3.43.

Hong Kong property developers were mixed a day after they
were beaten down. Sun Hung Kai Properties (0016.HK) rose 1.1
percent to HK$150.6 but Henderson Land (0012.HK) declined a
further 2.8 percent to HK$65.6.

Mainland property developers were mostly higher, with R&F
Properties (2777.HK) leading the gains. R&F closed up 4 percent
at HK$26.10, supported by its plans to list in the mainland.

Among large-caps, China Life (2628.HK), climbed 1.8 percent
to HK$39.7 and Sinopec Corp (0386.HK) rose 3.6 percent to
HK$11.04.

Alibaba.com (1688.HK), China's top ecommerce firm, rebounded
3.8 percent to HK$27.10, although earlier it set a new low since
its November listing.
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)