Hutchison Net Lifts China, HK Stocks

123jump.com Staff
26 Mar, 2009
New York City

Stocks in Hong Kong and Shanghai gained on better than expected economic data in the U.S. and better than expected earnings from Hutchison Whampoa and Cheung Kong Holdings. ICBC surged 15% after Goldman Sachs agreed to hold 80% stake for another year.

[R]9:00AM New York, 9:00PM Hong Kong – Stocks in China and Hong Kong surged on earnings and a rise in New York trading.[/R]

Stocks in Hong Kong surged 3.6% to 14,108.98 after local earnings and the U.S. economic data lifted sentiment in trading. Shanghai Stock Exchange Composite surged 3.06% to 2,361.70.

Hutchison Whampoa and Cheung Kong Holdings reported better than expected earnings. Traders also cited better U.S. economic data.

Hutchison Whampoa, the Hong Kong based conglomerate reported a decline in profit on revenues gains. The company said that the wireless unit is expected to turn profitable this year and demand in the developed and developing markets are still growing.

Hutchison Whampoa Limited, the telecommunications-to-ports conglomerate reported full-year revenues rose 13% to HK$348.37 billion from HK$308.78 billion a year ago. Net profit fell 42% to HK$17.7 billion or HK$4.14 per diluted share compared to net profit of HK$30.6 billion or HK$7.18 per share, a year earlier.

Hutchison Whampoa Limited, in the last one year traded as high as HK$85.65 in May 2008 and as low as HK$33.30 in December 2008. Based on today’s closing price of HK$42.55 the company has market cap of HK$181.41 billion.

Separately, the Hong Kong based property developer that owns 49% stake in Hutchison and both controlled by billionaire Li Ka-Shing reported a sharp decline in profit.

Cheung Kong (Holdings) Limited, the property developer in Hong Kong reported full-year revenues rose 6.5% to HK$16.4 billion from HK$15.4 billion a year ago. Net profit fell 44% to HK$15.5 billion or HK$6.70 per diluted share compared to net profit of HK$27.7 billion or HK$11.95 per share, a year earlier.

Cheung Kong (Holdings) Limited, in the last one year traded as high as HK$131.00 in May 2008 and as low as HK$55.95 in March 2009. Based on today’s closing price of HK$71.40 the company has market cap of HK$165.37 billion.

Li & Fung, the apparel and toy maker dropped 4.7% to HK$18.58 after the company warned that it may not meet its earnings estimates if markets in the U.S. continue to weaken.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 156.34 or 1.84% to 8,636.33, Hang Seng index in Hong Kong increased 486.87 or 3.57% closed to 14,108.98, CSI 300 index in China higher 78.46 or 3.27% closed to 2,479.79. ASX 200 index in Australia increased 37.30 or 1.03% closed to 3,646.60. The KL Composite index in Malaysia higher 6.66 or 0.76% closed to 885.47.

The Kospi Index in South Korea increased 14.78 or 1.20% to close at 1,243.80. SET index in Thailand closed higher 2.48 or 0.57% to 439.40.The Sensex index in India increased 335.20 or 3.47% closed to 10,003.10. The Markets of Indonesia were closed today.