HONG KONG, March 2 (Reuters) - Hong Kong shares are expected
to start lower on Monday with investors increasingly wary of the
financial sector, bracing for further bad news from banks ahead
of earnings results.
"The worries are the same, another round of the financial
tsunami, trouble in Eastern Europe, weak economic data and no
confidence in the banking sector," said Ben Kwong, COO with KGI
Asia.
U.S. stocks fell and the S&P 500 marks its worst-ever start
to a year on Friday after the government said it would take a
large stake in Citigroup's (C.N) common shares, fanning fears it
would increase its role in other major banks.
Trading in shares of HSBC Holdings plc (0005.HK) was
suspended in Hong Kong on Monday, the stock exchange said, ahead
of what sources expect will be a rights issue of up to $18
billion to be announced later in the session alongside its 2008
results.
The statement said HSBC's (HSBA.L) shares were suspended
pending the announcement of a corporate action to be made about
the same time the bank releases its annual results
The benchmark Hang Seng Index .HSI closed on Friday 0.7
percent lower at 12,811.57. The main index is unlikely to dip
below its January 2009 low of 12,469.84, a broker said on Monday.
STOCKS TO WATCH-
* Hutchison Telecommunications International (2332.HK) is
planning to spin off its Hong Kong fixed line and mobile
telephone business valued up to HK$12 billion in an IPO later
this year, the South China Morning Post said citing sources.
* Fosun International (0656.HK) said on Sunday its 60-percent
owned Nanjing Steel United would sell a 20 percent stake in steel
products maker Ningbo Iron & Steel to state-owned Hangzhou Iron &
Steel for 720 million yuan, in a move to avoid losses in the
project. For a statement please click here
Separately, the property developer and steel maker also said
Nanjing Steel United had commenced its public offer of 2.5
billion yuan worth of 7-year corporate bonds with coupon rate of
6.13 percent per annum to domestic institutional investors,
raising funds to improve its debt structure and meet its
operation needs. For statement please click
here
* Shaw Brothers 0080.HK said on Friday shareholders had
approved a bid to take the firm private. Listing of its shares on
the Hong Kong bourse will be withdrawn after the close of
business on March 18 while its suspended shares will resume
trading on Monday. For statement please see
here
* China Construction Bank (0939.HK) said late on Friday it
had issued 40 billion yuan worth of subordinated bonds on Feb.
26, raising funds to replenish the supplementary capital of the
bank. For statement please click
here
------------------ MARKET SNAPSHOT @ 2350 GMT ----------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 735.09 -2.36% -17.740
USD/JPY JPY= 97.21 -0.5% -0.490
10-YR US TSY YLD US10YT=RR 3.000 --- 0.020
SPOT GOLD XAU= $945.65 0.61% 5.750
US CRUDE CLc1 $44.15 -1.36% -0.610
DOW JONES .DJI 7062.93 -1.66% -119.15
ASIA ADRS .BKAS 78.85 -0.66% -0.52
---------------------------------------------------------------
> US STOCKS-Bank fear sends S&P to worst-ever start to a yr[.N]
> Oil pulled lower by dismal U.S. GDP data [O/R]
> TREASURIES-Longer bonds fall on swelling supply outlook [US/]
> FOREX-Dollar gains on safe-haven bid after weak US data[USD/]
> PRECIOUS-Gold drops for 5th straight day on weak stocks[GOL/]
(Reporting by Parvathy Ullatil; Editing by Jacqueline Wong)
(parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
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