HONG KONG, March 18 (Reuters) - Hong Kong stocks were
expected to rise on Tuesday after tumbling to 7-month lows, but
any recovery may be limited by worries that the ongoing credit
crisis could worsen.
Lehman Brothers LEH.N is the latest investment banking
stock to slump as fears mounted it was facing similar credit
problems to those that hit Bear Stearns BSC.N.
"We'll have some technical rebound; the sell-off yesterday
was overdone," said Steve Leung, director at UOB Kay Hian
Holdings.
"We'll open 300 points higher, but may only close slightly in
the positive tone. It won't be easy for Hong Kong to sustain a
rebound. Investors are worried there's no end to the credit
crunch."
The benchmark Hang Seng Index .HSI on Monday struck lows
not seen since August, closing down 5.2 percent to end at
21,084.61. The China Enterprises Index of Hong Kong-listed
mainland companies .HSCE tumbled 7.2 percent to 11,037.09.
STOCKS TO WATCH:
* Aluminum Corp of China Ltd (2600.HK), the world's No. 4
aluminium producer, posted annual earnings below expectations
after it failed to offset weakening prices and high production
costs by ramping up output, and faces a tough 2008 with global
supply ample [ID:nHKG298943].
Chalco also said on Monday it will pay up to 4.18 billion
yuan ($590.3 million) in bidding for stakes in six units of its
state-owned parent [ID:nHKG301867].
* Air China (0753.HK) posted a 19 percent rise in second-half
profit on Monday thanks to a stronger yuan and traffic growth,
but rising fuel prices loom in 2008 along with a more gloomy
outlook for global travel [ID:nHKG94473 ].
* PICC Property and Casualty Co Ltd (2328.HK) said its direct
premiums income for the first two months of 2008 amounted to
18.51 billion yuan.
* Beijing-backed property-to-steel conglomerate CITIC Pacific
(0267.HK) said on Monday the capital expenditure needed for its
iron ore mine in Australia will rise to $3.5 billion from an
estimated $2.5 billion [ID:nHKG57259].
* Tsingtao Brewery Co Ltd (0168.HK) said its proposed
issuance of bonds with warrants had been conditionally approval
by Chinese regulators and trading in its A-shares would resume on
Tuesday.
* Ming An (Holdings) Co Ltd 1389.HK said the unaudited
accumulated gross insurance premium income of its unit, The Ming
An Insurance Company (China) Ltd, for January and February 2008
amounted to 127.96 million yuan.
FACTORS TO WATCH:
* Nikkei .N225 edge higher, attention on yen [.T]
* Dow rises, S&P and Nasdaq down after Bear deal [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil slides over 4 pct as funds sell to raise cash [O/R]
* Dollar slumps in wake of Fed's emergency measures [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)
Hutchison Telecom (HTX.N)(2332.HK) +4.4
China South Air (ZNH.N)(1055.HK) -7.5
Sinopec Shanghai Petroleum (SHI.N)(0338.HK) -9.1
Semiconductor Mfng (SMI.N)(0981.HK) -9.6
(US$1=HK$7.8)
