Hk shares seen bouncing on U.S. gains, lower oil
HONG KONG, Aug 12 (Reuters) - Hong Kong shares are expected to rebound on Tuesday following another day of gains on Wall Street and retreating oil prices.
But many investors are waiting for a much-anticipated move by the Chinese government to prop up the badly bruised mainland market through policy intervention.
U.S. stocks rose on Monday as oil prices closed lower for a sixth day, improving prospects for consumer and business spending.
Oil prices fell on Monday as a drop in crude imports by No. 2 consumer China outweighed concerns over supply disruptions stemming from the conflict between Russia and Georgia.
"With most U.S-listed Hong Kong shares gaining overnight, we are set for a rebound today," said Francis Lun, general manager with Fulbright Securities. "But investors are waiting for Beijing to talk up the mainland market which looks sharply oversold now."
Shanghai shares closed on Monday at a 19-month low on economic growth and inflation worries.
Hong Kong stocks closed flat on Monday, giving up early gains when high producer price inflation numbers in China sent shares in most mainland manufacturers tumbling.
STOCKS TO WATCH-
* Angang Steel Co Ltd (0347.HK) said late on Monday its profit attributable to shareholders jumped 24.8 percent to 5.99 billion yuan ($873.5 million) for the first half of 2008, boosted by higher product prices and a corporate tax cut. While Angang's first half earnings beat most forecasts, industry watchers warned of tougher times ahead for the company with softening product prices and rising input costs expected to weigh.
For statement please see here
*Shares in timepiece-maker Peace Mark Holdings (0304.HK) plunged more than 70 percent at one point on Monday, as institutional investors dumped the stock on worries about the firm's high debt leverage and lack of clarity in its recent annual report.
The stock ended 42.2 percent lower despite management reassurances to analysts and media. The low level of confidence in the company should continue to pose an overhang on the share price, wrote UBS analyst Thomas Kwan.
* Huadian Power International Corp Ltd (1071.HK) said it had formed a 75-percent-owned joint venture with its controlling shareholder for the construction and operation of the Phase I Inner Mongolia Tongliao Yihetala Wind Power Project. Total investment by the joint venture will amount to 485.84 million yuan. For statement please see here
* Cathay Pacific Airways (0293.HK) will suspend one of its daily flight to Los Angeles and cut 3 weekly flight to Vancouver amid high oil prices and weakening demand in North America but will add flights to Australia, the South China Morning Post reported, citing the airline's chief executive Tony Tyler.
* Shimao Property Holdings (0813.HK) said first-half sales amounted to 5 billion yuan, about one-third of its target for 2008, according to the South China Morning Post.
The newspaper also cited Shimao chairman Hui Wing Mau as saying he was confident the company could meet its annual target of 17 billion yuan in property sales as many projects would be put on the market in the second half. ----------------------MARKET SNAPSHOT @ 2330 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1305.32 0.69% 9.000 USD/JPY JPY= 110.09 0.02% 0.020 10-YR US TSY YLD US10YT=RR 3.998 -- 0.000 SPOT GOLD XAU= 824.15 0.22% 1.850 US CRUDE CLc1 114.53 0.07% 0.080 DOW JONES .DJI 11782.35 0.41% 48.03 ASIA ADRS .BKAS 141.15 0.13% 0.19 ------------------------------------------------------------- > SEA Stocks-Rise on lower oil; Thailand up as ex-PM flees [.SO] > US STOCKS- Wall Street gains as oil slips [.N] > Oil falls on China crude import drop [O/R] > FOREX-Dollar extends rally vs euro on growth outlook [USD/] > TREASURIES-Bonds fall as crude oil slips, stocks rise [US/] > Gold tanks below $820 on dollar surge, sell-stops [GOL/]
(Reporting by Parvathy Ullatil; Editing by Dominic Whiting)
