HK stocks set to fall, airlines under pressure
HONG KONG, May 8 (Reuters) - Hong Kong stocks are set to fall on Thursday, tracking regional losses, with shares in refineries and airlines likely to come under further pressure after crude prices hit another record high.
"Another 100 to 200 points downside is expected, tracking Wall Street losses, while the focus will be on the mainland stocks as their performance is having a bigger and bigger impact on the local market," said Francis Lun, a general manager of Fulbright Securities.
"Nervous players are likely to lock in recent gains or even cut losses in a volatile market."
Brokers said rising oil prices would put pressure on airlines such as China Southern (1055.HK: Quote, Profile, Research, Stock Buzz) and Air China (0753.HK: Quote, Profile, Research, Stock Buzz), and refiners such as Sinopec (0386.HK: Quote, Profile, Research, Stock Buzz) and PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz).
The benchmark Hang Seng Index .HSI closed down 2.48 percent at 25,610.21 on Wednesday. The China Enterprises Index of Hong Kong-listed mainland companies .HSCE, or H shares, fell 3.64 percent to end at 14,118.31. ----------------------MARKET SNAPSHOT @ 0001 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1392.57 -1.81% -25.690 USD/JPY <JPY=> 104.87 0.13% 0.140 10-YR US TSY YLD <US10YT=RR> 3.8712 -- 0.000 SPOT GOLD <XAU=> 865.9 -0.14% -1.250 US CRUDE CLc1 123.79 0.21% 0.260 DOW JONES .DJI 12814.35 -1.59% -206.48 ASIA ADRS .BKAS 163.63 -2.88% -4.86 -------------------------------------------------------------
FACTORS TO WATCH: * Nikkei down 0.7 pc on banks after Wall St falls [.T] * Wall St dives on record oil over $123, financials [.N] * STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA] * Oil surges to new highs, dealers focus on diesel [O/R] * Euro hits six-week low against dollar [USD/] * For upcoming Hong Kong events, click on [HK/DIARY] * For Hong Kong press digest, click on [PRESS/HK]
STOCKS TO WATCH:
* Ping An Insurance (2318.HK: Quote, Profile, Research, Stock Buzz) (601318.SS: Quote, Profile, Research, Stock Buzz) said it had not made any change to its plan to offer local currency A shares, but it had no specific timetable for the issue and had not yet applied for approval. [ID:nSHA146469]
* China Life Insurance Co Ltd (2628.HK: Quote, Profile, Research, Stock Buzz) said it would inject a further 1.85 billion yuan in China Life Pension Co, boosting its stake in the individual pension and personal accident insurance unit to 87.4 percent from 55 percent. For details please see here
* China Power New Energy Development Co Ltd (0735.HK: Quote, Profile, Research, Stock Buzz) said National Development and Reform Commission of Gansu Province had given approval for commencement of preliminary works regarding development of Phase II of the Gansu Power Project in Gansu Province. For details please see here
KEY HK ADR MOVERS (by % change)
China Eastern (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) -10.66
China Southern Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -8.81
PetroChina (PTR.N: Quote, Profile, Research, Stock Buzz)(0857.HK: Quote, Profile, Research, Stock Buzz) -7.47
Huaneng Power (HNP.N: Quote, Profile, Research, Stock Buzz)(0902.HK: Quote, Profile, Research, Stock Buzz) -6.82
Sinopec Shanghai Petro (SHI.N: Quote, Profile, Research, Stock Buzz)(0338.HK: Quote, Profile, Research, Stock Buzz) -6.76
China Petroleum (SNP.N: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz) -6.7 (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Anne Marie Roantree)
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