HONG KONG, Dec 31 (Reuters) - Hong Kong shares were expected
to coast on Monday to their strongest yearly performance since
1999, with holiday-thinned ranks of investors making a bee-line
for recent debutantes such as building materials firm Sinoma
(1893.HK).
The benchmark Hang Seng Index .HSI has slid 14 percent off
a record high hit on Oct. 30 but remains on track for its best
annual gain in percentage terms in nine years.
It has risen 37 percent in 2007 versus a 69 percent rally in
1999, when much of Asia chalked up gains in the aftermath of the
1997/98 regional financial crisis.
Analysts expect the market to stay locked within a wafer-thin
250-point range on Monday since much of the investment community
is away for the New Year holiday.
"Newly listed shares will remain in focus. They performed so
well last Friday, even though the overall market was down," CASH
Asset Management associate director Patrick Yiu said.
"In the last day of 2007, we'll see the market flat or with a
mild upside only."
STOCKS TO WATCH:
* Top Asian oil refiner Sinopec Corp (0386.HK) (SNP.N)
(600028.SS) will buy interests in three oil refineries and 63
petrol stations from its parent for a total of 3.66 billion yuan.
[ID:nPEK204312]
* China COSCO (1919.HK), the country's largest shipping firm,
ordered the construction of 16 new vessels with capacity of 4,250
20-foot equivalent units (TEUs) apiece, collectively worth
US$1.08 billion. The deal is the latest in a string of ship
acquisitions as the firm ramps up capacity to ride booming trade
with the world's fourth largest economy.
here
* China Shipping Development (1138.HK) has ordered the
construction of six vessels for 2.84 billion yuan (US$389
million) and another four oil tankers for US$467 million.
here
here
* China Power International Development Ltd (2380.HK)
proposed to buy a quarter of state-owned Guangzhou Power
Enterprise Group Co for about 749.5 million yuan, expanding its
access to a southern electricity market estimated to have grown
at 12.5 percent from 2001 to 2005.
here
* Bank of East Asia (0023.HK) was in focus, after Spain's
Criteria Caixa Corp (CRIT.MC) said last week it had expanded its
stake in the Hong Kong-based lender to 8.9 percent for around 265
million euros, becoming the Asian firm's biggest public
shareholder. It climbed 2.7 percent on Friday after news of the
deal emerged as investors bet on further stake acquisitions.
FACTORS TO WATCH:
* U.S. stocks finish flat as housing concerns weigh [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil bounces above $96 on geopolitical worries [O/R]
* Dollar subdued by rate talk, safe-haven flows [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]
($1=7.303 Yuan)
(Reporting by Edwin Chan)
