HONG KONG, Sept 24 (Reuters) - Hong Kong shares are expected to track Wall Street's fall after the U.S. Federal Reserve said it was keeping its policy rate steady, but said the central bank would slow purchases of mortgage debt, triggering worries of weaker support for the economy.
"It triggered worry that other governments may follow suit and trim support, it could be the start of a more significant correction after the recent strength," said Francis Lun, a general manager at Fulbright Securities.
Lun forecast the benchamark index to slide about 300 points today as investors may also be preparing to exit their investments.
Economy-sensitive banks and financials are seen to be underpressure after their recent rallies, brokers said.
The market will also be keeping an eye out for trends in Hong Kong's exports from data for August due for release after the market closes. Shipments are still likely to be down year-on-year.
On Wednesday, the benchmark Hang Seng Index settled 0.49 percent lower at 21,595.52 points, off a 13-month high at the 21,700 level hit a week ago.
The China Enterprises Index of top locally listed mainland Chinese stocks edged down 0.6 percent to 12,431.81.
The trading debut of Metallurgical Corp of China (MCC), a Chinese construction and engineering company, is expected to be a focus.
STOCKS TO WATCH -
* Property investment firm Goldin Financial said it planned to raise HK$2.5 billion by issuing 2.37 billion rights shares at HK$1.07 each, a 14.4 percent discount to the previous close, raising capital to fund its business in China. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090924/LTN20090924047.pdf
* Waste treatment company China Everbright International said it would sell 480 million new shares to a controlling shareholder at HK$3.03 each, or a 5.3 percent discount to the last trading price, raising HK$1.4 billion in net proceeds for the development of its environmental protection business and for working capital. The shareholder will buy the shares on completion of sale of the same amount of existing shares at the same price. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090924/LTN20090924037.pdf
* China Construction Bank (CCB) said on Wednesday that it had
invested 100 million yuan ($14.6 million) in a rubber stopper
company, in a bid to tap into China's booming healthcare sector.
The company provides stoppers to medical companies, including
Sinovac Biotech
* Industrial and Commercial Bank of China will take a cautious approach to expanding overseas, the head of the world's largest bank by market capitalisation said in remarks published on Wednesday.
* CNOOC, China's top offshore oil producer, said on Wednesday that its target for a 15 percent production increase this year could come under pressure because of issues caused by a recent typhoon. * Apparel and footwear retailer Hembly International said it would buy waste-to-energy projects in China from a director for HK$1.16 billion, a bid to dieversify its business in light of the global economic outlook when consumers are reducing their spending. Trading in the shares will resume on Thursday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090923/LTN20090923576.pdf
* Electronic and electrical component manufacturer Sino-Tech said it would buy CITIC Logistics for HK$1.14 billion, a deal to be settled by an issue of notes and shares. CITIC Logistics has obtained rights from an energy company to provide transportation for petroleum products in Hong Kong. Trading in the shares will resume on Thursday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090923/LTN20090923573.pdf
* Phosphorus products maker Yun Sky Chemical said it would buy a coal mining company with mining licences in Inner Mongolia for HK$1.86 billion, a deal to be settled by issue of convertible notes. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090923/LTN20090923565.pdf ---------------------- MARKET SNAPSHOT -----------------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 1,060.87 -1.01% -10.790
USD/JPY
MARKET SUMMARY *Wall St drops on Fed stimulus withdrawal fears [nN23419930] *Crude falls closer to $68 on equities fall, dollar [nT273961] *US$ steadies after bounce, mood still bearish [nSYD499702] *Gold stable after New York decline [nSP95907] *Bonds perk up as Fed nowhere near the exitss [nN23417776] (Reporting by Donny Kwok; Editing by Chris Lewis)