HONG KONG, July 14 (Reuters) - Hong Kong shares are seen higher on Tuesday, tracking a rally in the U.S. following a bullish analysts' outlook for bank earnings, with the focus likely to be on banking stocks.
"There will be a rebound following a sharp drop on Monday," said Francis Lun, general manager of Fulbright Securities.
"An upside of about 200 points upside is expected, but excessive gains are unlikely on concern over earnings at major European and U.S. companies," Lun said.
Banking stocks were expected to be the market focus as investors look for laggards, dealers said.
The benchmark Hang Seng Index dropped 2.6 percent to a seven-week low of 17,254.63 on Monday as worries persisted about likely austerity measures from Beijing, following a strong surge in bank lending in the first half.
STOCKS TO WATCH -
* Shimao Property on Tuesday said its 64.21 percent owned Shanghai Shimao would issue up to 150 million A shares to a number of investors at 13.81 yuan each, raising about 2 billion yuan to fund development projects in Qingdao, Jiangsu, Suzhou and Beijing. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090714/LTN20090714023.pdf * Tsingtao Brewery Co Ltd late on Monday said it expected net profit for the first half of 2009 to increase by 60-70 percent year on year.
* Huadian Power International Corp Ltd late on Monday said it produced 50.07 million megawatt-hours of electricity in the first half of 2009, up 5.15 percent from the a year earlier, as more power plants commenced operation.
* Sichaun Expressway set an indicative price range for its A share offering of 3.25-3.60 yuan each. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090713/LTN20090713548.pdf
* MTR Corp on Monday said it had signed a project agreement with Hong Kong's government for the construction and operation of the West Island Line project, extending the underground railway line from Sheung Wan to Kennedy Town, with an estimated project cost of HK$15.4 billion (US$1.99 billion).
* Orient Overseas (International) Ltd said total revenue for the second quarter of 2009 fell by 42.6 percent year on year to US$869.6 million, with total container shipping volumes down 18.7 percent. Total revenue fell 37.2 percent for the first half and volume was down 17.2 percent. The company forecast container shipping volumes and rates to remain weak in the second half of the year. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090713/LTN20090713185.pdf ----------------------MARKET SNAPSHOT @ 2324 GMT ------------
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