China Stocks Edge Lower; Tencent Surges

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

Stocks in Hong Kong and Shanghai fell after markets in the region tracked the losses in the U.S. and in Europe. Banks, electronics contractors and energy companies led the decliners. Tencent Holdings surged 10% and Foxconn declined 5%.

[R]8:00PM Shanghai – Stocks in Hong Kong and Shanghai fell after markets in the region tracked the losses in the U.S. and in Europe. Banks, electronics contractors and energy companies led the decliners.[/R]

Stocks in Hong Kong and Shanghai declined in sympathy with losses in Japan, Europe and the U.S. Unexpected decline in April retail sales in the U.S. put investors on the alert that the talks of global recoveries may be too optimistic.

Freight rate index in London trading closed higher and base metal prices declined. The drop of more than 4% in copper, zinc and nickel prices also affected mining companies stocks.

In Hong Kong Hang Seng index decreased 517.93 or 3.04% closed to 16,541.69 and the Shanghai composite Index declined 23.88 or 0.9% to 2,639.89 and broader index CSI 300 Index fell 0.8% to 2,792.60.

Gainers & Losers

China Shipping declined 2.1% to 24.61 yuan, China CSSC Holdings edged 1.2% lower to 61.35 yuan. Guangzhou Shipyard International Co. edged 1% lower.

Crude oil prices edged lower. Sinopec declined 2.2% to 10.60 yuan and PetroChina Co. tracked 1.4% lower.

China Coal Energy Co. declined 0.6% after it reported April coal sales volume fell 20% to 6.55 million ton from 8.2 million tons a year ago. For the four months to April sales declined 16.3% to 24.5 million tons on a sharp fall in export sales volume of 75%. Domestic coal sales volume declined 1.4% in April and 4.5% in the first four months ending in April.

Foxconn International Holdings Ltd dropped 5.1% after retail sales in the U.S. fell in April. Auto and electronics sales were the leading decliners in the month.

Hong Kong Exchanges & Clearing Ltd declined 7.1% after it reported earnings.

Jilin Chemical Fiber Co. fell 4% to 4.05 yuan after the viscose and wool yarn and fiber company shut its filament production after workers fell ill several dozens were hospitalized according to the local media reports.

Kingboard Chemical Holdings Ltd declined 7.4% to HK$19.84 after the stock was selected to be included in the MSCI Emerging Markets Index.

Tencent Holdings Ltd surged 10% after it reported first quarter profit surged 94% to 1.04 billion yuan.

Earnings Review

Hong Kong Exchanges and Clearing Limited, the operator of Asia’s third-biggest stock market reported first quarter revenues fell 41% to HK$1.34 billion from HK$2.28 billion a year ago. Net profit in the quarter fell 49% to HK$834.2 million or HK$0.77 per diluted share compared to net profit of HK$1.65 billion or HK$1.53 per share a year ago

Hong Kong Exchanges and Clearing Limited, in the last one year traded as high as HK$153.70 in May 2008 and as low as HK$49.70 in November 2008. Based on the yesterday’s closing price of HK$105.20 the company has market cap of HK$113.40 billion.

Tencent Holdings Limited, the provider of Internet service and mobile value-added services reported first quarter revenues rose 78.6% to HK$2.5 billion from HK$1.4 billion a year ago. Net profit in the quarter rose 94% to HK$1.04 billion or HK$0.57 per diluted share compared to net profit of HK$534 million or HK$0.29 per share a year ago

Tencent Holdings Limited, in the last one year traded as high as HK$75.00in August 2008 and as low as HK$35.25 in October 2008. Based on the yesterday’s closing price of HK$73.00 the company has market cap of HK$131.04 billion.

Asian Markets Review

In Tokyo Nikkei 225 Index closed lower 246.76 or 2.64% to 9,093.73, in Hong Kong Hang Seng index decreased 517.93 or 3.04% closed to 16,541.69. In Australia ASX 200 index lower 132.70 or 3.44% to close 3,723.40. In Malaysia KL Composite index decreased 10.85 or 1.06% closed to 1,011.99.

In South Korea Kospi Index decreased 33.57 or 2.37% to close at 1,380.95, in Thailand SET index closed lower 26.16 or 4.73% to 526.55 and Indonesia JSE Index edged decreased 66.33 or 3.58% to 1,785.00. Sensex index in India decreased 146.74 or 1.22% to 11,872.91.