Hong Kong Fell, Asian Stocks Mixed

123jump.com Staff
02 Jan, 2008
New York City

Hong Kong stocks declined on the first day of trading in 2008 as investors worried on the direction of the U.S. interest rates. Hang Seng Index dropped 1.24% or 346.13 to 27,466.52. China Railway and China Communications rose more than 5% on the hopes that new construction activites will bolster revenue in 2008. Hong Kong properties stocks declined. Metals and energy stocks closed lower as prices of commodities in the region edged higher.

[R]5:00AM New York, 5:00PM - Hong Kong stocks declined on the first day of trading in 2008.[/R]

Stocks in Hong Kong declined as investors were wary pressures will mount on the U.S. dollar on speculation the U.S. Federal Reserve will cut interest rates on January 30.

In Hong Kong trading Hang Seng Index declined 1.24% or 346.13 to 27,466.52.

Turnover on the main board crossed HK$43.88 billion by mid-day, compared to HK$43.4 billion recorded during Monday''s half-day session.

The Hong Kong dollar is pegged at HK$7.80 to one U.S. dollar.

China Railway and China Communications Construction both rose 5% on expectations that infrastructure activities in China will increase in the coming years.

Property companies fell on expectations that a rate cut by the U.S. Federal Reserve might put pressures on the U.S. dollar. Hang Lung Properties declined 3.4%, Sun Hung Kai Properties tumbled 0.12 % and Cheung Kong plummeted 0.83 %.

Commodity stocks tumbled on falling metal prices. Datang Power, Chalco and Yanzhou Coal plunged as a result. However coal-mining company Hidili Industry International Development rose 1.84 % after the company said it will buy mining rights of three coal mines in Guizhou province for Rmb355 million.

MTR Corp climbed down from a record HK$30.75 before closing the morning up 5.75% at HK$30.35 as a result of its merger with Kowloon-Canton Railway Corp December.

China National Aviation Corporation, the parent company of Air China, announced in a statement last night that China Eastern and Singapore Airlines Limited should renew talks. CNAC also suggested that the current offer from Singapore Airlines at HK3.80 per share is below the fair value of the company.

CNAC also rejected the anti-dilution rights and non-competitive clause proposed by Singapore Air. Singapore Airlines in early September had agreed to buy a 24% stake worth HK$7.16 billion in China Eastern. China Eastern edged up 2.2% after the comments.

The Standard, an online edition, reported today that Emperor Capital Group managing director Daisy Yeung said today the company has entered into a strategic business tie-up with Jakarta-listed brokerage Hortus Danavest to tap into the Indonesian firm’s 20,000 clients.

Yeung said the company will provide online trading services, while Emperor’s clients will be able to trade Indonesian stocks through Hortus, which has a daily turnover of HK$10 million.

Separately, Emperor Capital Group recorded revenues increase of 33.7% from the previous year to HK$80.9 million for the six months ended September.

Henderson Land Development director John Yip Ying-chee said the company is expected to accelerate earnings beginning 2012 and its current land bank in the mainland China now stands at 120 million square feet.

In other Asian markets, ASX 200 in Australia increased 13.10 or 0.20% to close at 6,434.10. Financial markets in Tokyo were closed today.

In South Korea Kospi Index close at decreased 43.68 or 2.30% to close at 1,853.45, in Thailand SET index closed lower 13.83 or 2.19% to 616.90, and Indonesia JSE Index decreased 14.32 or 0.52% to 2,731.51. Sensex index in India increased 164.59 or 0.81% to close at 20,465.30.