HONG KONG, Oct 21 (Reuters) - Hong Kong shares are expected
to open slightly lower on Wednesday tracking softer overseas
markets but shares could find support from a weak U.S. dollar.
"A slight adjustment is expected as the dollar rebounds from
lows, but its underlying tone is still weak and that may give
support to local and China stocks," said Conita Hung, head of
equity research at Delta Asia Financial.
"A strong Chinese yuan currency and continuous inflows of
funds into the market, especially toward the laggards such as
Chinese property stocks, may lift the market," Hung added.
A weak U.S. dollar has exerted upward pressure on the Hong
Kong dollar and attracted capital inflows to the territory's
stock and property markets.
Hong Kong's central bank, the Hong Kong Monetary Authority,
injected HK$1.163 billion ($150 million) into the money market in
New York trading late on Tuesday to stem an appreciating Hong
Kong dollar HKD=. The move followed a HK$3.1 billion injection
by the HKMA earlier on Tuesday.
The Hong Kong dollar is pegged at 7.80 to the U.S. dollar but
can trade between 7.75 and 7.85. The HKMA is usually obliged to
intervene when the local currency hits 7.75 or 7.85.
The benchmark Hang Seng Index .HSI closed up 0.83 percent,
or 184.50 points, at 22,384.96, the highest level since Aug. 4,
2008.
STOCKS TO WATCH
* Guangzhou Investment (0123.HK) said it planned to separate
its toll road business and focus on its property business to
capture robust growth of the Chinese property market. Its
shareholders will get shares at its unit GZI Transport (1052.HK),
or cash during the reorganisation. It will also sell its
remaining GZI shares to existing shareholder to raise HK$1.6
billion to expand its property business. For statement please
click
here
* Chinese toll road operator Jiangsu Expressway (0177.HK)
said its net profit attributable to equity holders rose 36.55
percent from the year-ago period to 1.52 billion yuan ($222.7
million) for the first three quarters of 2009. For statement
please click
here
* Huaneng Power International Inc (0902.HK), China's largest
electricity provider, swung to a third-quarter profit due to more
output from new operating units, two tariff hikes in the second
half of 2008 and lower coal costs. It said it would invest an
estimated 5 billion yuan ($733 million) together with its parent
firm to develop a joint venture nuclear power project in China.
[ID:nLK418324]
* China Mobile (0941.HK), the world's largest mobile carrier,
faces little profit growth in the coming quarters as costs to
build a new 3G network weigh and increasing competition pushes it
towards lower value subscribers. China Mobile on Tuesday posted a
2.8 percent rise in third quarter profit to 28.6 billion yuan
($4.2 billion), from 27.9 billion yuan a year ago, according to
Reuters calculations from nine month figures. [ID:nPEK75764]
* China Telecom Corp (0728.HK), China's top fixed-line phone
company, said its quarterly profit fell 48 percent as users of
its core fixed-line services continued to migrate to mobile
services. [ID:nHKF082463]
----------------------MARKET SNAPSHOT @ 2324 GMT -------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1091.06 -0.62% -6.850
USD/JPY JPY= 90.72 0.03% 0.030
10-YR US TSY YLD US10YT=RR 3.3407 -- 0.000
SPOT GOLD XAU= 1054.45 0.04% 0.450
US CRUDE CLc1 78.71 -0.52% -0.410
DOW JONES .DJI 10041.48 -0.50% -50.71
ASIA ADRS .BKAS 125.41 -0.88% -1.11
--------------------------------------------------------------
> Wall St ends lower on profit taking; Yahoo up late [.N]
> Dollar steady, kiwi lifted by cenbank comments [USD/]
> Prices up on housing weakness, subdued inflation [US/]
> Gold slips below $1,060/oz as dollar rebounds [GOL/]
> Crude sinks below $79 after stock build [O/R]
(US$1=HK$7.75=6.825 yuan)
(Reporting by Donny Kwok; editing by Jacqueline Wong)
