HONG KONG, April 16 (Reuters) - Hong Kong stocks are expected
to track overseas gains on Wednesday after upbeat earnings from
U.S. regional banks brought relief, with investors keeping a
close watch on mainland stocks ahead of Chinese economic data.
"At least 200 to 300 points upside is expected. The index
will be able to hold the above 24,000 level if mainland markets
hold steady," said Francis Lun, general manager from Fulbright
Securities.
Brokers said buying interest may emerge as the market had
started to discount the potential impact of a possible interest
rate rise by Beijing, while recently oversold Chinese property
stocks may rebound.
"Airline stocks may still come under pressure as oil prices
touched another record high," Lun added.
China will release consumer inflation and Gross Domestic
Product data later on Wednesday.
The benchmark Hang Seng Index .HSI crept 0.4 percent higher
to end at 23,901.33 on Tuesday. The China Enterprises Index of
Hong Kong-listed companies .HSCE, or H shares, finished flat.
STOCKS TO WATCH:
* Tsingtao Brewery Co Ltd (0168.HK) said a rise in its
enterprise income tax rate to 33 percent for 2007 from the
previous rate of 15 percent would have "relatively substantial
impacts" on its 2007 annual results. The brewer estimated its
consolidated profit for the first three quarters of 2007 to be
reduced to by 135.23 million yuan to 560.21 million yuan after
the tax adjustment, as prepared in accordance with Chinese
accounting standards. For details please see
here
* China Insurance International Holdings Co (0966.HK) said
the accumulated premium income of its subsidiary Tai Ping Life
Insurance amounted to 6.16 billion yuan for the first quarter of
2008. For details please see
here
* SMIC, whose shares surged 42 percent on Tuesday, said in a
statement it knew of no reason for the share price surge and was
in no discloseable talks related to acquisitions, amid persistent
talk the firm is close to securing a major investor to tide the
struggling firm through an expected downturn in the global chip
sector.
* Citi downgraded Huaneng Power International (0902.HK) to
sell from buy ahead of its expected poor first-quarter results.
Citi said cost pressures remained, while tariffs would not be
hiked soon.
* China Power International Development Ltd (2380.HK) said on
Tuesday it aims to nearly double generating capacity by 2010 as
it scrambles to feed the world's No. 2 electricity market. But it
warned on Tuesday that fuel costs will rise up to a fifth and eat
into margins as coal prices climb.
* An institutional investor of Cosco Pacific LTD (1199.HK)
was selling $96 million worth of shares at a 5.2 percent to 6
percent discount to the firm's Tuesday closing price, according
to a term sheet obtained by Reuters.
* PICC Property and Casualty (2328.HK), China's largest
property insurer, posted a 44 percent rise in net profit to 2.99
billion yuan for 2007. The consensus forecast, according to
Reuters Estimates, was for net profit of 4.78 billion yuan for
the year.
* Shenhua Energy (1088.HK), the world's most valuable coal
miner, produced and sold about a fifth more of the fuel in the
first quarter of 2008 to feed the world's largest market for the
resource. Shenhua cranked out 44.6 million tonnes of coal, versus
37.3 million tonnes a year ago. Sales rose 22 percent to 56.7
million tonnes.
FACTORS TO WATCH:
* Nikkei up 1.1 pct as exporters gain after Intel [.T]
* Energy and banks lift market, Intel up after bell [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil hits record $114, Britain calls for OPEC hike [O/R]
* Dollar cheered by U.S. manufacturing, inflation 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)
SEMIC Manfc Intl (SMI.N)(0981.HK) +36.81
CNOOC Ltd (CEO.N)(0883.HK) +3.45
China Unicom (CHU.N)(0762.HK) +3.04
China Eastern Air (CEA.N)(0670.HK) -5.66
Sinopec Sha Pet (SHI.N)(0338.HK) -2.9
China Southern Air (ZNH.N)(1055.HK) -2.37
(US$1=HK$7.8)
(Reporting by Donny Kwok)
