HK shares seen in narrow range ahead of US election

By Jun Ebias

HONG KONG, Nov 4 (Reuters) - Hong Kong shares are likely to
trade cautiously on Tuesday, with most investors awaiting the
results of the presidential election in the United States.

Commodity stocks will likely come under pressure after oil
prices fell nearly 6 percent overnight to $63.91 a barrel and
stayed below $64 during Asian trade early on Tuesday.

"Overall, the market will trade in a narrow range of around
14,000 to 14,400 level. Most investors are still cautious because
the U.S. market did not move last night. The market is waiting
for the outcome of the election in the U.S.," said Conita Hung,
research head at Delta Asia Securities.

U.S. stocks closed little changed, as investors were
unwilling to place bets before the election. Early indications of
the election are expected at 2300 GMT.

Hong Kong shares rose 2.7 percent on Monday, with Chinese
counters leading the charge on hopes the mainland central bank
has eased restrictions on lending.

"The sentiment has improved compared to last month but it's
not very strong," Hung said.

Hong Kong stocks posted their worst monthly performance in
more than a decade in October.

STOCKS TO WATCH

* China Unicom (0762.HK) on Tuesday said it and its
substantial shareholders were conducting a preliminary study on
future development and direction of the fixed-line business and
assets that are owned and operated by the substantial
shareholders on completion of the merger with China Netcom Group
Corp (Hong Kong). For statement please see
here

* CITIC Resources (1205.HK) said on Monday it planned to take
CITIC Australia Trading CAL.AX private by offering A$0.75 per
share for A$15.1 million in aggregate, because the unit had not
raised any funds through the equity or debt capital markets since
its listing in Australia in June 2002 and the fees and costs
associated with its continuing listing was not justified. For
statement please see
here
* CITIC Pacific (0267.HK) said on Monday it was talks with
CITIC Group in relation to the arrangements for a standby loan
facility of US$1.5 billion. Trading in the shares remains
suspended pending a further statement.
here
* Chalco (2600.HK) said its unit had entered into a 420
million yuan agreement with Huasheng Jiangquan for the
construction of an aluminum smelter with annual capacity of
100,000 tonnes. For statement please see
here

* Richard Li and China Netcom have reached an agreement to
privatise PCCW in a deal worth HK$19.5 billion offering at below
HK$5 a share, the South China Morning Post said, citing
sources.[ID:nHGK310893]

PCCW has yet to make a formal announcement on the
privatisation issue.

----------------------MARKET SNAPSHOT @ 2244 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 966.3 -0.25% -2.450
USD/JPY JPY= 99.14 -0.02% -0.020
10-YR US TSY YLD US10YT=RR 3.9141 -- -0.060
SPOT GOLD XAU= 722.05 -0.04% -0.300
US CRUDE CLc1 63.8 -5.91% -4.010
DOW JONES .DJI 9319.83 -0.06% -5.18
ASIA ADRS .BKAS 96.96 1.21% 1.16
-------------------------------------------------------------

MARKET SUMMARY *Wall St ends barely changed before US
election [ID:nN03358203]
*Oil drops near 6 percent on slumping demand [ID:nSYD368172]
*Dollar rises ahead of election on safe-haven bid[ID:nN03353527]
*Treasuries gain, economic woes fuel safety bid [ID:nN03352631]
(Editing by Anne Marie Roantree)