HK shares seen gaining, tracking Wall Street

Published 08/13/2009, 09:41 PM
Updated 08/13/2009, 09:42 PM
USD/JPY
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HONG KONG, Aug 14 (Reuters) - Hong Kong shares may climb on Friday after strong earnings momentum helped Wall Street shares overcome weak economic data and with support from firmer energy prices.

Oil rose by more than $1 per barrel on Friday, fuelled by hopes that economies worldwide are on the path to recovery and as Asian stocks opened higher.

China Merchants Bank Co will be eyed after the lender said it would raise 15 billion to 18 billion yuan ($2.20 billion-$2.63 billion) via a rights issue of Hong Kong-listed H shares and Shanghai-listed A shares to boost its capital adequacy ratio.

China's sixth-largest lender said it would issue no more than two shares for every 10 shares held by existing A-share and H-share holders at a discount to market trading prices.

The benchmark Hang Seng Index rose 2.1 percent on Thursday, recouping part of the steep losses made in the previous session, helped by supportive comments from the U.S. Federal Reserve and positive earnings momentum.

STOCKS TO WATCH-

* China's Yanzhou Coal Mining Co agreed to buy Australian coal miner Felix Resources Ltd for $2.9 billion, both companies said on Thursday, further underscoring China's growing appetite for resources assets. Trading in Yanzhou Coal shares will resume on Friday.

* Shanghai Forte Land said late on Thursday that it aimed to list in Shanghai through an issue of 285 million A shares.

The Chinese property company said it would apply to the China Securities Regulatory Commission and seek shareholder approval to list A shares on the Shanghai Stock Exchange at a price to be determined by market conditions.

Proceeds from the sale will be used to fund property development projects and to replenish working capital, the company added. For a statement, please click http://www.hkexnews.hk/listedco/listconews/sehk/20090813/LTN20090813517.pdf

* Consumer goods exporter Li & Fung Ltd on Thursday said profit would improve in the second half of the year after a weak first half amid early signs of an improving global economy, giving it confidence to reaffirm targets in its three-year plan.

Li & Fung posted a net profit of HK$1.4 billion (US$179 million) for the year to June against HK$1.24 billion a year earlier. The profit matched analysts expectations and represented 12.9 percent growth from a year earlier, but down from the 18 percent growth in the same period of 2008

* China's top e-commerce company, Alibaba.com, posted a 34.2 percent fall in quarterly net profit on Thursday as margins fell and on higher investment costs, but its earnings beat analysts' expectations.

Alibaba.com will also issue a special dividend of HK$0.20 per share to be paid out to shareholders around Sept. 9.

* Minmetals Land said on Thursday that it aimed to raise HK$453 million net proceeds in a top-up placement of up to 222 million new shares at HK$2.10 each, raising capital to fund land acquisitions and investments in new real estate development projects. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090813/LTN20090813525.pdf

* Kowloon Development said it would buy residential development projects in Hong Kong and Shenyang for HK$856 million, a deal to be settled by an issue of promissory notes and cash. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090813/LTN20090813514.pdf ----------------------MARKET SNAPSHOT @ 2306 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 1012.73 0.69% 6.920 USD/JPY 95.38 0.01% 0.010 10-YR US TSY YLD 3.6043 -- 0.000 SPOT GOLD 955.45 0.20% 1.950 US CRUDE 71.07 0.78% 0.560 DOW JONES <.DJI> 9398.19 0.39% 36.58 ------------------------------------------------------------- > Wall Street rises as Wal-Mart offsets weak data [.N] > Euro rises as France, Germany exit recession [USD/] > Rally on solid 30-yr auction, weak retail sales [US/] > Gold rises on economic optimism, investment interest [GOL/] > Oil rises tracking Wall Street [O/R] (Reporting by Parvathy Ullatil; Editing by Chris Lewis)

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