HK stocks seen dropping but commodities may edge up
HONG KONG (Reuters) - Hong Kong stocks should fall in line with world equity markets on Wednesday, as investors brace for a possible U.S. recession, but metal producers could gain after spot gold XAU= jumped to a record high and copper rallied.
Trading in shares of China Eastern (0670.HK) resumes on Wednesday after shareholders rejected a deal to sell a US$920 million stake to Singapore Airlines (SIAL.SI).
"We'll follow the overseas markets," said Steve Leung, director at UOB Kay Hian Holdings.
"We'll drop 1.5 to 2 percent. But the situation will only bring in more room for more rate cuts, so it's not all that bad. There will still be buying interest in rate-sensitive stocks like properties."
The benchmark Hang Seng index .HSI fell 0.3 percent to 27,112.90 on Tuesday. The China Enterprises Index of Hong Kong-listed mainland companies .HSCE gained 0.4 percent to 15,659.71.
STOCKS TO WATCH:
* Shareholders in China High Speed Transmission Equipment (0658.HK) were selling up to about US$208 million worth of shares in the country's top wind power transmission gear maker at between HK$17.88 and HK$18.64 per share at a discount of between 3 to 7 percent to Tuesday's closing price, according to a term sheet. UBS (UBS.N) was handling the deal.
* Parkson Retail Group Ltd (3368.HK) said on Wednesday its controlling shareholder planned to sell up to 8 million shares, or 1.44 percent of the company, at about HK$78.66 per share. BNP Paribas Capital and JPMorgan Securities are the placing agents.
* China Financial Leasing Group (2312.HK) said on Wednesday it estimated its second-half net profit would increase by 4 times against HK$5.4 million net profit in the first half of 2007 as the company repositioned its business focus on the China financing leasing market. For detail please see:
* Chinese property developer Shanghai Zendai Property (0755.HK) said it would buy a stake in a property project firm, which owns a parcel of land in China's Hainan, for 206.26 million yuan cash. For details please see: here
* China State Construction International Holdings Ltd (3311.HK) said it proposed a bonus issue of warrants in the proportion of one warrant for every 7 shares held with an initial subscription price of HK$15 per share. The company would receive about HK$1.3 billion before expenses on exercise in full of the bonus warrants and the company would use the proceeds for general working capital and to reduce its debt burden. For details please see
* TPV Technology (0903.HK), the world's top computer monitor maker, said a fire that broke out at part of its production plant in Brazil would not significantly impact production and the financial impact would not be material. The plant produced a total of 2.2 million units in 2007, accounting for less than 5 percent of the company's total shipments.
* Dalian Port (PDA) Co Ltd (2880.HK) said its oil and liquefied chemicals throughput increased 5.1 percent to 34.4 million tons in 2007, while container throughput in Dalian rose 18.4 percent to 3.7 million TEUs. For details please see here
* Asia Satellite Telecommunications Holdings Ltd (1135.HK) SAT.N said it planned to voluntarily delist its American Depositary Shares from the New York Stock Exchange and end its American Depositary Receipts program due to relatively low participation and related costs .
FACTORS TO WATCH: * Nikkei .N225 opens down 1.1 pct on US economy fears .T * U.S. stocks sink as AT&T stirs recession fear .N * STOCKS NEWS ASIA-Market factors, main events <STXNEWS/ASIA> * Oil rebounds on supply worries, Nigeria threat <O/R> * Dollar slips as growth concerns weigh on US stocks <USD/> * For upcoming Hong Kong events, click on <HK/DIARY> *
KEY HK ADR MOVERS (by % change)
China Telecom (CHA.N)(0728.HK) +1.2
Huaneng Power (HNP.N)(0902.HK) +0.4
China South Air (ZNH.N)(1055.HK) -2.5
China Unicom (CHU.N)(0762.HK) -2.8
CNOOC Ltd (CEO.N)(0883.HK) -3.6
(US$1=HK$7.8)
(Reporting by Rita Chang; Editing by Anne Marie Roantree)
