China Markets Trade Lower; HSBC, Sands Fall

123jump.com Staff
02 Mar, 2010
New York City

Markets in Hong Kong and Shanghai traded after commodities eased and resource stocks traded lower. Hong Kong stocks also decreased following weaker than expected earnings from HSBC. Coal and metals stocks declined in Shanghai after coal prices eased 3% in the previous week shipments.

[R]7:00 PM Hong Kong, China – Markets in Hong Kong and Shanghai traded after commodities eased and resource stocks traded lower. Hong Kong stocks also decreased following weaker than expected earnings from HSBC. Coal and metals stocks declined in Shanghai after coal prices eased 3% in the previous week shipments.[/R]

Stocks in Hong Kong and Shanghai decreased after commodities eased and worries of copper supply disruption receded. Chie earthquake has not disrupted copper shipments so far.

Hang Seng index in Hong Kong decreased 150.82 or 0.72% to 20,906.11, and CSI 300 index in China lower 13.19 or 0.40% to 3,311.24.

Developers gained on positive comments from foreign banks UBS AG and JP Morgan Chase. China Vanke also reported 32% increase in 2009 earnings and sales in the year so far are meeting company expectations.

Hong Kong based banks traded higher but HSBC declined after it reported higher loan loss provisions.

Hong Kong home sales increased 13% to HK$40.8 billion in February according to the Land Registry. The number of home sales transaction increased 10% from January to 11,733 and soared 161% from 4,487 in the month a year ago.

According to the data provided by Centaline Property Agency Ltd, existing home sales were HK$1.52 billion in the month on 960 transactions in the month. The monthly sale of existing homes is a record since November 1997.

Shanghai Movers

Resource stocks scaled back a day after rallying to the daily limit in the previous session.

Jiangxi Copper declined 4.6% to 36.77 yuan, Yunan Copper Industry Co dropped 4.7% to 26.72 yuan and Tongling Nonferrous Metals Group declined 4.5% to 19.56 yuan.

Copper for June delivery in Shanghai trading fell 1.8% to 59,600 yuan according to the data published by Thomson Reuters.

Coal producers declined after coal prices fell nearly 3% in the previous week private negotiations. China Coal Energy Co decreased 1.4% to 11.77 yuan and Datong Coal Industry dropped 2.6% to 35.17 yuan.

Real estate developers increased after China Vanke reported 32% increase in 2009 profit of 5.33 billion yuan. Gemdale Corp also advanced 1.6% to 12.87 yuan.

Kailuan Energy Chemical Co. increased 3.5% to 21.64 yuan after it agreed to acquire 48% holding in Shanxi Xiujie Tairui Coal Asset Operation.

Sichuan Swellfun soared daily limit of 10% to 23.75 yuan after trading suspension last week. Diageo Plc offered to acquire the company at 610 million pounds.

HK Movers

Bank of China Limited the bank rose 2.5% to HK$4.02.

BYD Company Limited rose 4.4% to HK$65.90 after the maker of batteries and cars and Daimler AG formed a joint venture on electric cars.

China Construction Bank Corporation rose 1.1% to HK$6.18.

China Overseas Land & Investment Limited fell 0.6% to HK$16.36 after the company’s stock was upgraded to “buy” from “neutral” at Bank of America-Merrill Lynch Research.

CNOOC Limited the offshore oil explorer declined 1.1% to HK$12.14.

HSBC Holdings plc decreased 7% to HK$80.55 after the bank reported 2009 earnings increased 1.9% to $5.83 billion and bad loan provisions nearly doubled from a year ago.

Sands China Ltd dropped 1.4% to HK$10.74 an operator of integrated resorts and casinos reported 2009 revenues rose 8% to $3.3 billion from $3.05 billion a year ago. Net profit in the quarter rose 22% to $213.8 million or 3.32 cents per diluted share compared to net profit of $175.7 million or 2.80 cents per share a year ago.