HONG KONG, Oct 15 (Reuters) - Hong Kong stocks are expected to open lower on Friday with the benchmark index easing from a 28-month peak and historically high overbought levels.
The Hang Seng Index <.HSI> closed 1.7 percent higher on Thursday lifting its relative strength index -- a measure of how overbought or oversold a security is -- to its highest level since 1993.
The index closed at a 28-month high of 23,852.17 with banks and energy companies seeing strong inflows as a persistently weak dollar pushed funds into emerging markets.
"We have seen a rise of more than 200 points on three out of the previous four sessions this week and the index is seriously overbought. Investors will take profit today and we should see a correction back to around 23,500 points," said Francis Lun, a general manager at Fulbright Securities.
U.S. stocks fell on Thursday, with banks lower, as investors fretted that a widening foreclosure crisis could undermine the market's recent strength.
Elsewhere in Asia, Japan's Nikkei <.N225> fell 0.8 percent while South Korea's KOSPI <.KS11> was trading little changed as of 0120 GMT.
STOCKS TO WATCH:
- BYD Co Ltd <1211.HK>, the automaker backed by U.S. billionaire investor Warren Buffett, saw its September car sales rise 6.5 percent from the previous month, but were down by a quarter from the previous year. [ID:nTOE69D07K]
- Dalian Port (PDA) Co Ltd <2880.HK>, north China's largest port operator, expects to raise about 3.7 billion yuan ($556 million) from an initial public offering on the mainland, it said in a draft prospectus. [ID:nTOE69D094]
- China Railway Group Ltd <0390.HK><601390.SS> has obtained regulatory approval to sell 6 billion yuan ($902.2 million) in bonds next week, the company said on Friday. [ID:nTOE69D08M]
- Value Partners Group Ltd <0806.HK> said it would sell 140 shares at HK$5.68 each in a share sale raising HK$795.2 million for the expansion of its business in China to provide seed capital for its new funds and to expand distribution channels. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101015/LTN20101015005.pdf
- China Rare Earth Holdings Ltd <0769.HK> said it planned to sell up to 120 million shares at HK$3.95 each, or 10.02 percent discount to the previous close, raising about HK$455 million net proceeds for working capital. Trading in the shares will resume on Friday. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101014/LTN20101014852.pdf
- Yanzhou Coal Mining Co Ltd <1171.HK> said it had revised upwards its earnings estimate to a year-on-year increase of 100 percent for the first nine months of 2010, in accordance with Chinese accounting standards, from a more than 50 percent rise estimated earlier. The discrepancy was led by exchange rate fluctuations of the Australian dollar to the U.S. dollar, which resulted in a gain for a U.S. dollar-denominated loan granted to Yancoal Australia Pty Ltd. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101014/LTN20101014594.pdf
- China Coal Energy Co Ltd <1898.HK> said raw coal production volume increased 10.9 percent in September from a year earlier, while coke production volume fell 21.1 percent, and coal sale volume dropped 2.3 percent. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101014/LTN20101014540.pdf
MARKET SUMMARY *Wall St falls but ends off lows, banks slide [nN14147731] *Treasuries fall after weak 30 year auction [nN14116502] *Dollar drops to 2010 lows vs major rivals [nN14145035] *Oil dips, U.S. jobless data outweighs stock drop [nSGE69D0AS] (Reporting by Vikram S Subhedar; Editing by Chris Lewis)