Banks in HK Decline

123jump.com Staff
31 Mar, 2008
New York City

Hang Seng fell 1.9% in Monday trading and declined 18% in the first quarter on rising inflation, falling dollar and worries related to global economic slowdown. Chinese Coking Industry Association forecasted higher coke price for the year as supply lags the rising demand. Financial stocks declined after analysts suggested that UBS may need to raise $16 billion in capital.

[R]6:00AM New York, 6:00 Hong Kong - Hang Seng Index falls 18% in the first quarter.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index fell 1.88% or 436.75 at 22,849.20, shedding 6% in March and 18% in the quarter, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, dropped 2.81% or 349.23 to 12,083.30, losing 25% for March and 13% in the first quarter.

In Shanghai trading, CSI 300 Index slipped 3.26% or 127.63 at 3,790.53.

Daily turnover on main-board was HK$74.50 billion compared with HK$97.54 billion on Friday.

China imports 1.95 billion LCD panels in 2007

Xinhua News Agency reported today that the General Administration of Customs said yesterday China imported 1.95 billion liquid crystal display panels in 2007, 9.5% more than the previous year.

According to the report, the arrivals were valued at $40.7 billion, which is 26.5% more than a year earlier, while import prices were 15.5% compared to 2006 at $20.9 per unit.

The customs office said most of the imports were large seven-generation products, while domestically made products were of four and five-generation level.

High world coke prices to persist for the year

Separately, the online news edition reported today that China Coking Industry Association chairman Huang Jingan said at a conference held in Beijing the price of coke will remain high in the wake of high demand and rising costs.

China''s steel industry produced about 959.2 million tons of crude steel and iron last year, and consumed 90% of the country''s coke output.

Union Bank of Switzerland report noted that coking coal output in the world is estimated at 211 million tons this year, while the demand may cross 221 million tons. Demands from China, India and Brazil will remain strong among other countries, the report said.

[Gainers & Losers

Financial stocks fell on news UBS may ask shareholders to approve a capital increase of up to $16.1 billion to maintain its Tier 1 capital ratio. Oppenheimer also added that the bank lacked cash to maintain its current $1.28 annual payout. HSBC fell 0.86% to HK$126.80 and China Life declined 4.29% to HK$26.75 as a result.

China Mobile fell 2.11% to HK$115.80.

Airliners rose as crude oil prices eased. China Southern climbed 2.01%, Air China jumped 2.5%, China Eastern gained 0.51% and Cathay Pacific increased 1.73%.

New listing Solargiga Energy Holdings advanced 0.3% of its IPO price at HK$2.93 and Xingfa Aluminium Holdings declined 7% to end at HK$2.11 compared with its issue price of HK$2.28.

Shares of China Telecom slid 4.69% to HK$4.88 after the fixed-line service company said it had agreed to buy Beijing Telecom from its state parent for Rmb 5.55 billion.

China Resources edged up 1.63% to HK$25 after it posted a 79% rise in full-year profit on strong retail and beer sales.

Henderson Investment rose 37.68% to HK$0.95.

Jiangsu Expressway Co Ltd rose 4.63% to HK$7 after profit rose 40% to Rmb1.64 billion.

Dongfang Electrical Corp declined 6.8% after the company said it would issue up to 65 million new A shares, raising capital to fund part of its Rmb 3.96 billion investment in power projects.