HK shares seen lower on U.S. financial worries
HONG KONG, July 15 (Reuters) - Hong Kong shares are expected to fall on Tuesday, with financial hevyweight HSBC Holdings (0005.HK) likely to take another beating as concerns about the health of the U.S. banking sector linger.
"Investors are still nervous about losses at other financial institutions. But the mainland markets have been holding firm despite all the turmoil in the U.S., so we should get some support from there today," said Conita Hung, head of equity marjkets with Delta Asia Securities.
U.S. stocks fell on Monday as worries about the U.S. banking sector after Friday's collapse of IndyMac IMB.N outweighed optimism over a government plan to support mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N).
Hung expects the Hang Seng Index .HSI to dip around 300 points on Tuesday.
Hong Kong shares snapped a three-session winning streak to fall 0.8 percent on Monday, as some investors read the U.S. government's proposed bailout of the two troubled mortgage finance firms as a sign of deeper trouble in financial markets. STOCKS TO WATCH
* Citic Resources Holdings (1205.HK) said in an announcement to the stock exchange its issue of 788.68 million rights shares at HK$3.20 each was about 86 percent subscribed. Dealing in the rights shares will begin on Thursday. For statement please read here
* Datang International Power (0991.HK) said its total power generation amounted to 62.2529 billion kWh for the first half of 2008, up 11.08 percent from the same period a year ago. The total on-grid power generation was 58.5987 billion kilowatt hours (kWh), an increase of 10.96 percent from a year ago. The company said the increase in power generation was mainly due to a rise in the capacity of its operational generating units. For details please see here
* China Mobile Communications is gearing up to expand its homegrown 3G service to all provincials capitals after the Olympic Games, the South China Morning Post reported, quoting industry sources.
* PCCW (0008.HK) has received proposals from 8 bidders for its 45 percent stake in HKT Group valued at up to US$2.6 billion, the South China Morning Post reported. ---------------MARKET SNAPSHOT AT 23:54 GMT ------------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,228.30 -0.9 -11.190 USD/JPY JPY= 106.20 0.0 0.000 10-YR US TSY YLD US10YT=RR 3.869 -- 0.006 SPOT GOLD XAU= $971.25 -0.05 -0.450 US CRUDE CLc1 $144.97 -0.14 -0.210 DOW JONES .DJI 11055.19 -0.41 -45.35 ASIA ADRS .BKAS 143.75 -0.35 -0.51 ------------------------------------------------------------- > SE Asian Stocks-Lower on credit fears, Thai leads losses [.SO] > FOREX-Dollar up vs euro on Fannie, Freddie rescue plan [USD/] > TREASURIES-Bonds gain on safety bid amid bank worries [US/] > Financial market gitters boost safe-haven gold [GOL/] > Oil firms over $145 on Brazil, demand worries weigh [O/R] > US STOCKS-Wall St sags as bank fear offsets Fannie, Freddie aid [.N] (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)
