HK stocks seen down, oil related stocks in focus

HONG KONG, May 6 (Reuters) - Hong Kong stocks are expected to
fall on Tuesday, tracking regional losses, with oil related
stocks in focus as crude prices hit a record.

"The index may dive below 26,000 as investors may lock in
profit if the market lacks momentum to move up," said Francis
Lun, general manager from Fulbright Securities.

"A correction sounds reasonable as the index had been up by
about 2,000 points in the last two weeks," Lun said.

Brokers said airline stocks and Chinese refinery firms could
be under pressure amid surging oil prices that are set to
increase their operating costs.

Participants are also watching closely the move of the
mainland stocks where a correction is expected after their recent
strength, traders said.

The benchmark Hang Seng Index .HSI closed down 0.22 percent
at 26,183.95 on Monday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, edged down
0.04 percent to end at 14,625.28.

----------------------MARKET SNAPSHOT @ 2351 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 .SPX 1407.49 -0.45% -6.410

USD/JPY JPY= 104.88 -0.04% -0.040

10-YR US TSY YLD US10YT=RR 3.8592 -- -0.012

SPOT GOLD XAU= 871.7 -0.15% -1.350

US CRUDE CLc1 119.74 -0.19% -0.230

DOW JONES .DJI 12969.54 -0.68% -88.66

ASIA ADRS .BKAS 166.93 -0.14% -0.24

-------------------------------------------------------------

FACTORS TO WATCH:
* Nikkei .N225 closed for holiday [.T]
* Wall St falls on Countrywide fears, record oil [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil jumps $4 to record over $120 on weak dollar [O/R]
* Dollar slips, commodity currencies favoured [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

STOCKS TO WATCH:

* Goldman Sachs downgraded PetroChina (0857.HK)(601857.SS) to
sell from buy due to widening refining losses as oil prices
surge. Goldman said it estimated PetroChina's refining losses
could exceed 100 billion yuan in 2008. [ID:nHKG120989].

* China's top e-commerce firm Alibaba.com (1688.HK) is due to
post quarterly earnings on Tuesday. The company is expected to
report a strong first quarter net profit of 263-290 million yuan
($37.6-$41.4 million) as margins improved, according to two
analysts polled by Reuters.

* China Oriental Group (0581.HK) has set up a majority owned
joint venture for production of H-section steel products in China
with total investment amounting to 1.2 billion yuan. It aims to
double the current production capacity to 2.5 million tonnes per
annum and expects its mainstream product, H-section steel, will
account for over 50 percent of its revenue by 2009. For details
please see
here

* Mongolia Energy Corp Ltd (0276.HK) said it would expand its
concession areas in Western Mongolia for coal, ferrous and
non-ferrous resources to about 329,008 hectares from 66,000
hectares by way of a transfer of a mining licence and and five
exploration licences. For details please see
here

* Israeli mobile phone operator Partner Communications Co
(PTNR.TA) (PTNR.O) reported a 24 percent rise in quarterly net
profit and said on Monday it planned to start offering
residential high-speed Internet services next year. Partner is
52.2 percent owned by Hutchison Telecommunications International
Ltd (2332.HK) (HTX.N), which is controlled by Hutchison Whampoa
(0013.HK). [ID:nL05156337]

* Department store operator New World Department Store China
Ltd (0825.HK) said it would buy a commercial complex property of
Shenyang New World Department Store in a popular shopping
district in Shenyang in Liaoning province for HK$270 million, a
deal to be settled by internal resources. For details please see
here

KEY HK ADR MOVERS (by % change)

Hutchison Tel (HTX.N)(2332.HK) -2.85

Sinopec Shanghai Petroleum (SHI.N)(0338.HK) -2.27

China Telecom (CHA.N)(0728.HK) -1.95

China Petroleum (SNP.N)(0386.HK) -1.89

China Mobile (CHL.N)(0941.HK) -1.76

China Netcom CN.N 0906.HK -1.41
(US$1=HK$7.8)
(Reporting by Donny Kwok; editing by Ken Wills)