HONG KONG, June 2 (Reuters) - Hong Kong stocks should fall on
Monday amid renewed worries over inflation in mainland China and
concern about the outlook for the global economy.
"Some 200 points downside is expected after Friday's rally.
Some of the stocks had been seriously overbought," said Francis
Lun, general manager from Fulbright Securities.
"Investors are unlikely to brave the market in an unclear
market trend."
The benchmark Hang Seng Index .HSI closed up 0.61 percent
at 24,533.12 points on Friday, lifted by a 4.8 percent jump in
PetroChina (0857.HK). The index ended the week down 0.7 percent,
and fell 5 percent for the month.
The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, ended Friday up 1.91 percent at
13,770.51.
STOCKS TO WATCH:
* CITIC Resources Holdings (1205.HK) said it planned to issue
788.68 million worth of rights shares at HK$3.2 each, raising
HK$2.5 billion to enhance financial conditions, for funding
future investments and for working capital. For details please
see
here
* Beijing Capital International Airport (0694.HK) said it
planned to sell 313.21 million H-shares at HK$7.45 each, raising
HK$2.1 billion for general working capital and spending,
including expenditures to be incurred in preparation for the
increased traffic at Beijing Capital Airport during the 2008
Summer Olympics. For details please see
here
* Yue Yuen Industrial (Holdings) (0551.HK) said the final
offer price of its retail spin-off Pou Sheng International
(Holdings) was HK$3.05 apiece and the proceeds to be raised would
amount to HK$2.5 billion. For details please see
here
------------------------MARKET SNAPSHOT @ 23:49 GMT-----------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1,400.38 0.15% 2.120
USD/JPY JPY= 105.42 0.12% 0.130
10-YR US TSY YLD US10YT=RR 4.056 -- -0.012
SPOT GOLD XAU= $886.35 0.05% 0.450
US CRUDE CLc1 $127.31 -0.03% -0.040
DOW JONES .DJI 12638.32 -0.06% -7.90
ASIA ADRS .BKAS 163.98 1.16% 1.88
--------------------------------------------------------------
FACTORS TO WATCH:
* Nikkei opens flat, exporters edge up on steady yen [.T]
* US stocks-Tech jumps on Dell optimism; broader market flat [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil steady at $127, storm Arthur opens hurricane season [O/R]
* Dollar down vs euro, but on track for monthly gain [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)
China South Air (ZNH.N)(1055.HK) +6.08
China Petroleum (SNP.N)(0386.HK) +3.83
Aluminum China (ACH.N)(2600.HK) +3.55
Yanzhou (YZC.N)(1171.HK) +3.27
Huaneng Power (HNP.N)(0902.HK) +2.46
(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)
