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HK Hot Stocks-Belle International, Unicom, property

Published 09/21/2010, 11:45 PM
Updated 09/21/2010, 11:48 PM
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HONG KONG, Sept 22 (Reuters) - By 0330 GMT, the benchmark Hang Seng Index was up 0.91 percent at 22,201.97.

The China Enterprises Index of top locally listed mainland companies was up 0.53 percent at 12,257.56.

Here are some stocks on the move:

* Footwear retailer Belle International Holdings Ltd jumped 5.3 percent, leading a rally in retail and consumer-related plays, ahead of the "golden week" holiday in China on expectations of a spurt in consumer spending.

"The National Day holiday will give a strong boost to retail sales," said Dongliang Chang, analyst at China Everbright Research, in a note to clients.

For department stores, even though discounts may slightly compress margins, doubling or even tripling sales during the holiday would largely offset that impact, said Dongliang.

China Resources Enterprise Ltd, which produces Snow, China's top beer brand, was up 2.1 percent.

* China Unicom (Hong Kong) Ltd fell 3 percent and was the top losers on the Hang Seng Index after Deutsche Bank AG downgraded the stock to "sell" from "buy" on the company's inability to ramp up subscriber additions despite increasing promotional activity.

The brokerage also cut its long-term forecast for 3G subscribers, a key growth area for China Unicom.

The company, China's No.2 mobile carrier, said total mobile subscribers rose to 160.2 million in August, including 9.5 million 3G subscribers.

* Local property plays extended recent gains with investors increasingly optimistic that commercial and retail demand for Hong Kong real estate will remain robust.

Conglomerates that operate large commercial properties in Hong Kong were up in active trade followed by local developers.

Swire Pacific Ltd rose 3.8 percent on more than twice its average 30-day volume, while Wharf (Holdings) Ltd was up 2.8 percent. Wharf, trading at an all-time high, is the month's top performer, up more than 22 percent, on the Hang Seng Index.

Local developers also rallied on healthy volumes with Cheung Kong (Holdings) Ltd up 2.6 percent and Henderson Land Development Co Ltd gaining 2.5 percent.

In a note published on Sept. 21, Credit Suisse recommended that investors continue to switch out of utility stocks and into local property shares.

Analysts said an extended period of low interest rates on the back of solid rental demand was expected to sustain local property stocks. (Reporting by Vikram S Subhedar; Editing by Chris Lewis)

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