Weak Hong Kong, Shanghai Stocks

123jump.com Staff
28 Apr, 2009
New York City

Stocks in Hong Kong are expected to trade lower after another round of worries for banks and weak earnings in the financial sectors dominate the world markets trading. Ping An, the second largest insurer plunged 9% after the quarterly earnings drop 72%.

[R]7:45 AM Hong Kong – Stocks in Hong Kong are expected to trade lower after another round of worries for banks and weak earnings in the financial sectors dominate the world markets trading.[/R]

Stocks in Shanghai and Hong Kong are expected to decline in morning trading as more worries about U.S. bank health surface. Regulators have asked Citigroup and Bank of America to seek more capital which both banks are disputing.

In Monday’s trading the Shanghai Composite Index declined 3.91 or 0.2% to 2,401.44 and CSI 300 index increased 0.2% to 2,518.33. Hang Seng index declined 1.9% or 285.31 to 14,555.11.

Daily turnover on the main board was HK$56.24 billion from HK$53 billion.

Banks and insurance companies declined after Citigroup and Bank of America questioned the demand to raise more capital by the U.S. regulators. Standard & Chartered Bank plunged 5.5% and HSBC dropped 2.5%.

ICBC, China Mobile, Ping An and HSBC Holdings led the most active stocks in trading.

Ping An, the second largest insurer plunged 9% or HK$4.45 to HK$45.25 after it reported first quarter profit plunged 72% to 1.99 billion yuan.

PetroChina in Hong Kong dropped 1.8% to HK$6.50 after it reported first quarter profit declined 35% to 18.96 billion.

Traders and analysts debated the direction of global economy and the impact of swine flu pandemic. While the flu is still restricted to few countries but on Tuesday more cases of flu linked deaths were reported in Mexico and in the U.S. World Health Organization raised its flu alert to the highest level since 2005.

Earnings Review

Baidu, Inc, the China''s most popular search engine said first quarter sales rose 41% to Rmb 810.7 million from Rmb 574.4 million a year ago. Net profit in the quarter rose 23.5% to Rmb 181.1 million or Rmb 5.22 per diluted share compared to net income of Rmb 146.6 million or Rmb 4.22 per share a year ago.

Baidu, Inc, in the last one year traded as high as $382.90 in April 2008 and as low as $100.50 in December 2008. Based on the yesterday’s closing price of $224.86 the company has market cap of $7.77 billion.

PetroChina Company Limited, an oil and gas producer and seller in the People’s Republic of China said first quarter revenues fell 30% to 181.58 billion. Net profit in the quarter fell 35% to RMB 18.96 billion compared to net profit of RMB 29.31 billion, a year earlier.

PetroChina Company Limited, in the last one year traded as high as RMB 18.97 in May 2008 and as low as RMB 9.71 in January 2009. Based on the yesterday’s closing price of RMB 11.46 the company has market cap of RMB 2.10 trillion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 232.57 or 2.67% to 8,493.77, Hang Seng index in Hong Kong decreased 285.31 or 1.92% closed to 14,555.11, CSI 300 index in China higher 5.24 or 0.21% closed to 2,518.53. ASX 200 index in Australia decreased 23.20 or 0.62% closed to 3,708.40. The KL Composite index in Malaysia lower 14.42 or 1.47% closed to 965.70.

The Kospi Index in South Korea decreased 39.59 or 2.95% to close at 1,300.24. SET index in Thailand closed lower 2.27 or 0.48% to 472.72 and JSE Index in Indonesia increased 19.83 or 1.26% closed to 1,595.92. The Sensex index in India decreased 370.10 or 3.25% closed to 11,001.75.