HONG KONG, March 26 (Reuters) - Hong Kong stocks are expected
to extend gains on Wednesday, benefitting from improved sentiment
overseas and buoyed by strong results from some major blue
chips.
"A continuous rebound in the local stock market is expected
due to strong fundamentals as demonstrated by strong earnings
from ICBC and China Life," said Francis Lun, a general manager
from Fulbright Securities.
"The index may rise to the 23,000 level, but profit-taking
interest may cap the upside as investors are still lacking
sufficient confidence on the outlook for the market," Lun added.
Blue chips jumped 6.43 percent, the biggest one-day
percentage rise in two months, with the benchmark Hang Seng Index
.HSI closing 1,356.30 points higher at 22,464.52.
Dealers said improved sentiment might give a boost to
Taiwan-based snack maker Want Want China Holdings (0151.HK) in
their Hong Kong trading debut after the firm raised $1 billion in
a Hong Kong initial public offering.
STOCKS TO WATCH:
* China's top integrated copper producer, Jiangxi Copper Co
Ltd (0358.HK) (600362.SS), said 2007 earnings fell 12.4 percent
to 4.15 billion yuan ($588.6 million) in 2007, due to falling
processing fees for smelting the metal.
The earnings lagged an average forecast of 4.54 billion yuan
from 15 analysts polled by Reuters Estimates. [ID:nHKG338828]
* China Life Insurance Co (2628.HK) China's largest life
underwriter, posted a 42 percent gain in second-half 2007 profit
on strong investment returns, topping analysts' expectations, but
it faces a more turbulent market environment in 2008.
[ID:nT353504]
* Industrial & Commercial Bank of China Ltd (1398.HK) and
Bank of China (3988.HK) posted higher fourth-quarter profits on
Tuesday, buoyed by the country's surging economy, but the state
giants were dragged down by holdings in U.S. subprime-related
securities. [ID:nHKG326898]
* Bank of China (3988.HK) (601988.SS), the country's premier
foreign exchange lender, expects growth of new loans in 2008 to
roughly match last year's 13 percent, and said it intended to
actively pursue overseas acquisitions this year. [ID:nHKG328060]
* The chairman of China's largest sportswear retailer, Li
Ning (2331.HK), is selling up to HK$408 million ($52.43 million)
worth of shares in the company at 5 percent to 10 percent below
the stock's closing price, according to a term sheet obtained by
Reuters.
[ID:nHKG346802]
* PetroChina (0857.HK), the second-largest Chinese state
refiner, bought 200,000 tonnes of diesel for April, a trading
source said on Tuesday, to boost domestic stocks amid sporadic
diesel rationing and strong demand for spring farming.
[ID:nPEK321014]
* Dah Sing Financial Holdings (0440.HK) said it would issue
8.46 millon new shares, or 3.27 percent of its enlarged share
capital, at HK$55.75 each to the Bank of Tokyo-Mitsubishi UFJ,
Ltd., raising HK$471.2 million for geneal working capital. For
details please see
here
* China Shipping Development (1138.HK) said it predicted its
net profit for the first quarter of 2008 would increase by more
than 50 percent over the same period in 2007. Rates in domestic
coastal bulk shipment contracts for 2008 had shown an average
increase of 40 percent over the 2007 rates, while an increase in
operating costs for the first quarter was predicted to be less
than the increase in shipment revenue. For details please see
here
FACTORS TO WATCH:
* Japan stocks slip after gains, exporter down [.T]
* S&P 500, Nasdaq inch up; Clear Channel hit late [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* U.S. crude edges higher as dollar under pressure [O/R]
* Dollar slips on rebound in gold, commodities [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 Southern Air (ZNH.N)(1055.HK) +6.36
Huaneng Power (HNP.N)(0902.HK) +6.28
China Telecom (CHA.N)(0728.HK) +5.64
China Unicom (CHU.N)(0762.HK) +5.55
China Eastern Air (CEA.N)(0670.HK) +5.13
Sinopec Sha Pet (SHI.N)(0338.HK) +4.95
(Reporting by Donny Kwok; editing by Ken Wills)
