HONG KONG, Sept 21 (Reuters) - Hong Kong shares are expected
to open little changed after the index hit new highs for the
year last week, before gathering new momentum for the week
ahead.
Sentiment had cooled a bit, as indicated by the slight drop
in the benchmark index on Friday, after A shares on the mainland
fell in late trade last week.
The market may start looking for a new focus after banks and
Chinese stocks, which were anticipated to be among the first to
benefit from an expected recovery, had risen on ample liquidity.
"The Hong Kong market may wait and see what happens first in
Shanghai before it makes any definite move," said Linus Yip,
strategist at First Shanghai Securities.
The China Securities Regulatory Commission recently approved
seven IPOs to be listed on the new second board of the Shenzhen
stock exchange, raising concerns these could soak up
considerable liquidity from the Hong Kong and Shanghai bourses.
But Taifook Securities said the IPOs would only raise a
combined 2.25 billion yuan, which should not be a big deal.
The benchmark Hang Seng Index .HSI closed down 0.67
percent at 21,623.45 on Friday, but ended the week up 2.2
percent in its third consecutive weekly gain.
The China Enterprises Index .HSCE, which represents top
locally listed mainland Chinese stocks, edged down 0.42 percent
to 12,614.57.
STOCKS TO WATCH-
*Skyfame Realty (0059.HK) said late on Friday that it would
sell hotel and office property assets in Guangzhou to HNA Hotel
for 1.1 billion yuan, raising capital to fund an early note
redemption and for working capital. For statement click:
http: //www.hkexnews.hk/listedco/listconews/sehk/20090918/
LTN20090918570.pdf
*Securities broker Value Convergence (0821.HK) said late on
Friday that it had entered into an agreement with at least six
subscribers in relation to the issue and subscription of its
convertible bonds. For statement click www.hkexnews.hk/
listedco/listconews/sehk/20090918/LTN20090918456.pdf
*Melco International (0200.HK) said on Sunday that it would
sell its remaining 160.9 million shares, or 43.24 percent of the
issued share capital of securities broker Value Convergence
(0821.HK) at a discount at HK$1.92 each for HK$309 million to
third party investors. For statement click www.hkexnews.
hk/listedco/listconews/sehk/20090920/LTN20090920021.pdf
*Kingboard Chemical (0148.HK) said it would sell HK$787.2
million ($101.5 million) worth of existing shares, representing
5.33 percent of the issued share capital of Kingboard Laminates
(1888.HK) at HK$4.92 each, cutting its stake in the unit to
69.44 percent and raising capital to fund investment
opportunities. For statement click
here
/20090920/LTN20090920045.pdf
*Guangdong Tannery Ltd (1058.HK) said Ren Yingguo had
resigned as executive director and managing director with effect
from Sept 20, and would take up a new position in another
subsidiary of GDH Ltd, the controlling shareholder of the
company. Its chairman Zhang Chunting will temporarily take up
Ren's duties as managing director. For statement click
here
----------------------MARKET SNAPSHOT @ 2253 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1068.3 0.26% 2.810
USD/JPY JPY= 91.39 -0.08% -0.070
10-YR US TSY YLD US10YT=RR 3.4688 -- 0.000
SPOT GOLD XAU= 1002.5 -0.36% -3.650
US CRUDE CLc1 71.8 -0.33% -0.240
DOW JONES .DJI 9820.20 0.37% 36.28
ASIA ADRS .BKAS 124.74 0.46% 0.57
-------------------------------------------------------------Market Summary
*Wall St ends higher on oil's drop, financials [nN14517758]
*US dollar jumps to near 6-month high versus euro [nN14577986]
*Oil falls to $115 on economic weakness [nSP181234]
*Treasuries dip before next week's auctions, FOMC [nN18534676]
(Reporting by Nerilyn Tenorio; Editing by Chris Lewis)
