Banks Advance in HK; Alibaba.com Net Falls

123jump.com Staff
06 May, 2009
New York City

Stocks in Hong Kong and Shanghai rallied on the hopes that banks will report better than expected earnings. Alibaba.com earnings fell after it increased marketing expenses and offered cheaper subscriptions to its Web site.

[R]8:00PM Hong Kong, 8:00AM New York – Stocks in Hong Kong and Shanghai rallied on the hopes that banks will report better than expected earnings. Alibaba.com earnings fell after it increased marketing expenses and offered cheaper subscriptions to its Web site.[/R]

Banking stocks rallied in Hong Kong after Singapore banks reported better than expected earnings in the afternoon.

The Hang Seng index in Hong Kong increased 404.49 or 2.46% closed to 16,834.57, CSI 300 index in China higher 37.96 or 1.39% closed to 2,764.98. Hong Kong stocks have increased 48% in the last five weeks and the government pledge to spend 4 trillion yuan in China has also bolstered investor sentiment.

Gainers & Losers

Banks in Hong Kong rallied after the release of earnings from United Overseas Bank Ltd and Overseas Chinese Banking Corp. UOB in Singapore surged 16.6% to S$14.8 and OCBC increased 4.6% to S$6.80.

HSBC increased 6.3% to HK$61.60 and Standard Chartered Plc added 7.4% to HK$141.
Standard Chartered Plc surged after it reported that the company will post profit on a gain buy back of bonds at a discount.

Citic Pacific Ltd declined 2.4% to HK$12.88 after the company Chairman plans to sell 60 million shares between HK$11.95 and HK$12.20.

New World Development increase 7% after Goldman Sachs raised its target price to HK$8.70 and removed the company from the sell list.

Fujian Holdings Limited increased 17.4% to HK$0.81 after China cabinet approved the plan for special economic zone in Fujian province and renew ties with Taiwan.

Earnings News

Alibaba.com Ltd. first quarter revenues rose 19% to 806.6 million yuan from 680 million yuan and net income declined to 253.4 million yuan from 300.7 million. Earnings per share declined to 0.05 yuan from 0.06 yuan in the quarter a year ago.

Alibaba.com declined 0.1% to HK$10.24.

Asian Markets Review

The Hang Seng index in Hong Kong increased 404.49 or 2.46% closed to 16,834.57, CSI 300 index in China higher 37.96 or 1.39% closed to 2,764.98. ASX 200 index in Australia decreased 23.30 or 0.60% closed to 3,867.10. The KL Composite index in Malaysia higher 15.09 or 1.50% closed to 1,023.96..

The Kospi Index in South Korea decreased 4.47 or 0.32% to close at 1,393.45. The SET index in Thailand closed higher 16.88 or 3.33% to 523.14 and JSE Index in Indonesia increased 26.27 or 1.48% closed to 1,798.34. The Sensex index in India decreased 178.33 or 1.47% closed to 11,952.75.