By Hanny Wan
Nov. 12 (Bloomberg) -- Hong Kong stocks fell for a second day, led by oil producers and shipping-related shares, after crude declined and China said iron-ore imports next year would remain flat.
Cnooc Ltd. slid 3.4 percent as crude oil prices traded near a 20-month low. China Merchants Holdings (International) Co., the investor in ports moving about a third of the country's containers, plunged 8.5 percent on concern trade will slow, eroding earnings. Cheung Kong (Holdings) Ltd. slipped 4.8 percent after the South China Morning Post said the company had cut prices for a luxury residential project in Beijing.
``What we see globally is that we're clearly moving into recessionary conditions; that is likely to have an impact on earnings,'' said Christian Goldsmith, Hong Kong-based international investment specialist at Fortis. ``That is the real negative within our equity view. There could be further downgrades from analysts.''
The Hang Seng Index lost 262.55, or 1.9 percent, to 13,778.35 at the 12:30 p.m. break, after rising as much as 1.5 percent. The measure dropped 4.8 percent yesterday. The Hang Seng China Enterprises Index, which tracks so-called H shares, fell 1.6 percent to 7,025.52.
The Hang Seng Index's drop today and yesterday trimmed the gauge's advance since Oct. 27, its worst close since May 2004, to 25 percent, after China cut interest rates for the third time in two months and Hong Kong followed a U.S. rate reduction last month. China pledged a $586 billion stimulus package on Nov. 9 to bolster growth.
`Valuations Attractive'
The stock benchmark is still down 50 percent this year as global financial turmoil prompted Hong Kong to guarantee bank deposits last month. It trades at 9.8 times estimated earnings, lower than the 11.8 times for the MSCI Asia Pacific Index.
``For investors who are willing to take a two- to three-year view, valuations now look attractive,'' Goldsmith said.
Cnooc, China's biggest offshore oil producer, lost 3.4 percent to HK$5.94. PetroChina Co., the nation's largest oil producer, slipped 0.8 percent to HK$5.89.
Crude oil futures dropped 4.9 percent to $59.33 a barrel in New York yesterday, the lowest settlement since March 20, 2007. The contract was recently at $59.23 in after-hours trading.
Pacific Basin Shipping Ltd., Hong Kong's biggest dry-bulk carrier, retreated 8.3 percent to HK$3.56. China Merchants tumbled 8.5 percent to HK$15.10, the sharpest slump on the Hang Seng Index. China Merchants' dry-bulk business accounts for about 10 percent of sales.
Alibaba.com Climbs
China's iron-ore imports may remain at 400 million metric tons next year, unchanged from 2008 levels, Zou Jian, chairman of the China Metallurgical Mining Enterprise Association, said in an interview yesterday in Beijing. The demand slump will show up in import figures in the next two months, he said.
Cheung Kong retreated 4.8 percent to HK$69.10. The Hong Kong developer owned by billionaire Li Ka-shing has cut prices for a luxury residential project in Beijing as the property market slows, the Post reported, without saying where it got the information.
China Overseas Land & Investment Ltd., a developer controlled by China's construction ministry, fell 5.9 percent to HK$8.95.
More than four stocks on the 42-member Hang Seng Index declined for each that climbed. November futures slipped 1.5 percent to 13,758.
The following stocks rose or fell. Stock symbols are in brackets after company names.
Alibaba.com Ltd. (1688 HK), China's biggest trading Web site for companies, surged 13 percent to HK$5.43 after reporting a 49 percent increase in profit. The company also said it will start buying back stock.
Bank of Communications Ltd. (3328 HK) lost 7 cents, or 1.5 percent, to HK$4.63. China's fourth-biggest bank by value said yesterday 478.6 million shares will become freely tradable on Nov. 17 after ending a lockup period. The so-called lockup period for these shares will end Nov. 15, 18 months after they were issued, the bank said.
Li & Fung Ltd. (494 HK), a supplier of toys and clothing to Wal-Mart Stores Inc. and other retailers, jumped 88 cents, or 6.9 percent, to HK$13.66 after announcing it will be the buying agent for Liz Claiborne Inc.'s Mexx clothing brand.
To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net
Posts
No comments:
Post a Comment