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HK shares seen recovering from recent sharp drop

Published 08/12/2009, 09:33 PM
Updated 08/12/2009, 09:36 PM
USD/JPY
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HONG KONG, Aug 13 (Reuters) - Hong Kong shares are expected to climb on Thursday, recouping some of Wednesday's sharp losses, as Wall Street shares rose overnight on the back of supportive comments from the U.S. Federal Reserve.

Fushan International Energy and Hopson Development Holdings will be watched after the stocks were included in the MSCI Emerging Markets Index following the latest index review.

Top earnings on Thursday include billionaire Li Ka-shing's flagship Hutchison Whampoa and property developer Cheung Kong Holdings.

The Federal Reserve said the U.S. economy was leveling out and left interest rates unchanged at the end of its two-day policy meeting. It also said it would extend the duration but not the size of a programme to buy long-term government debt.

The benchmark Hang Seng Index slid 3 percent on Wednesday to finish at 20,435.24 posting its biggest single-day drop in three months.

STOCKS TO WATCH-

* Poly Development said on Thursday that it planned to raise HK$310 million in a top-up placement of shares at a 16.72 percent discount to the previous close at HK$1.116 each. Trading in the shares will resume on Thursday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090813/LTN20090813018.pdf

* Dah Sing Banking Group said on Thursday that it would issue 125 million shares, or 11.24 percent of its enlarged share capital, at HK$8 each to Dah Sing Financial Holding <0440.HK> for HK$1 billion in a bid to capitalise a loan under a facility agreement. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090813/LTN20090813015.pdf

* Anta Sports said late on Wednesday that it would buy 85 percent of Full Prospects, which owns and manages the Fila PRC trademarks in Hong Kong, Macau and China, and the entire Fila marketing rights from Belle International for up to HK$650 million. The deal, which will allow Anta to expand into the high-end market in China and be funded by internal resources, is subject to approval from the Anti-Monopoly Bureau in China. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090812/LTN20090812546.pdf

* CITIC Resources said late on Wednesday that it expected to record a loss for the first half of 2009, compared with a HK$520 million profit a year earlier, as deterioration in demand for and prices of energy resources and commodities as a consequence of the global financial and economic crisis has continued to affect its performance. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090812/LTN20090812403.pdf

* China Construction Bank said it had completed an issuance of 20 billion yuan worth of subordinated bonds. The proceeds will be used to replenish the supplementary capital of the bank. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090812/LTN20090812368.pdf ----------------------MARKET SNAPSHOT @ 2242 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 1005.81 1.15% 11.460 USD/JPY 96.19 0.11% 0.110 10-YR US TSY YLD 3.7113 -- 0.000 SPOT GOLD 948.05 0.21% 2.000 US CRUDE 70.57 0.58% 0.420 DOW JONES <.DJI> 9361.61 1.30% 120.16 ASIA ADRS <.BKAS> 121.18 0.81% 0.97 -------------------------------------------------------------

MARKETS SUMMARY *Wall Street gains as Fed says economy is leveling out[nN1272730] *Oil rises as optimism outweighs US inventory build [nSP527509] *Dollar up vs yen as Fed says it will slow purchase [nN12160962] *Treasuries hurt by Fed statement, stocks rally [nN12605872] (Reporting by Parvathy Ullatil; Editing by Chris Lewis)

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