HONG KONG, April 17 (Reuters) - Hong Kong stocks are expected
to rise on Thursday, tracking higher overseas markets, after
upbeat company earnings from the United States soothed investor
worries over corporate profitability.
"The market is likely to rebound strongly today as good
corporate earnings indicated that the credit crunch did not
affect companies' profitability," said Francis Lun, general
manager at Fulbright Securities.
China's central bank announced late on Wednesday it would
lift banks' reserve requirements by 0.5 percentage point, which
could help remove concerns over an imminent interest rate hike,
he said.
Heavyweights, such as HSBC (0005.HK) and China Mobile
(0941.HK), are expected to lead the market's rally.
Record high oil prices could boost oil stocks, such as
PetroChina (0857.HK) and CNOOC (0883.HK), but weigh further on
airlines, while China's high inflation could put pressure on
mainland property counters.
Rotational buying should lift the blue-chip Hang Seng index
.HSI but it could see some resistance at the high of 24,681 hit
last Friday, said Ben Kwong, an associate director at KGI Asia.
Trading in shares of Pacific Century Premium Developments
(0432.HK) was suspended on Thursday ahead of its shareholder
meeting later in the day on PCCW's plan to take the property firm
private for $333 million.
Hong Kong will release unemployment data for January to March
later on Thursday.
The benchmark Hang Seng Index .HSI eased 0.1 percent to end
at 23,878.35 on Wednesday. The China Enterprises Index of Hong
Kong-listed companies .HSCE, or H shares, finished off 0.56
percent.
STOCKS TO WATCH:
* China's largest independent electricity provider, Huaneng
Power International (0902.HK), reported its first quarter net
profit fell more than 50 percent on rising coal costs, despite an
18.6 percent rise in power generation. For the result story
please read [nHKG229219]
* Cement producer China National Building Materials Co
(3323.HK) said it had made available of 9 billion yuan credit
facilities from China Minsheng Banking Corp after it obtained 8.3
billion yuan credit facilities from Bank of Communications
Beijing Branch at the end of 2007 for restructuring of cement
business. For details please see
here
* Steel and property development concern Fosun International
(0656.HK) said it secured a three year loan facility of up to 5
billion yuan from China Development Bank Shanghai Branch for
future mergers and acquisitions and working capital. For details
please see
here
* Integrated oil logistics provider Titan Petrochemicals
(1192.HK) said it would sell two of its very large crude carriers
to Avin International SA for US$59 million, a move to further
reducing the firm's dependency on the volatile very large crude
carrier market. For details please see
here
* Ship chatering and owning firm Jinhui Holdings (0137.HK)
said it would sell two vessels, with about 53,500 metric tons
each, for US$160 million, a move to further enhance its working
capital position. For details please see
here
FACTORS TO WATCH:
* Nikkei opens up 1.3 pct at 13,315.83 [.T]
* U.S. stocks jump as corporate profits reassure [.N]
* STOCKS NEWS ASIA-Shares seen up on U.S. earnings [STXNEWS/AS]
* Oil hits record $115 on US inventory draw, dollar [O/R]
* Dollar sinks to record low vs euro on weak US data [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]
KEY HK ADR MOVERS (by % change)
CNOOC Ltd (CEO.N)(0883.HK) +5.85
Sinopec Sha Pet (SHI.N)(0338.HK) +5.30
China Telecom (CHA.N)(0728.HK) +5.05
Sinopec Corp (SNP.N)(0387.HK) +3.87
China Eastern Air (CEA.N)(0670.HK) -0.24
Huaneng Power (HNP.N)(0902.HK) -3.56
SEMIC Manfc Intl (SMI.N)(0981.HK) -12.14
(US$1=HK$7.8)
(Reporting by Alison Leung; Editing by Anne Marie Roantree)
