Hong Kong stocks up ahead of Hutch earnings

26 Aug, 2005

Hong Kong stocks edged higher on Thursday ahead of a mixed bag of earnings from bellwether stock Hutchison Whampoa and with oil shares boosted by oil prices at fresh record highs.
But falls for several heavyweight banking and property shares such as HSBC Holdings Plc tempered gains as investors worried that high oil prices may dampen future economic momentum. Top offshore oil producer CNOOC Ltd was the top blue chip performer, up 2.75 percent to HK$5.60.
Hang Lung Properties was the top blue chip loser, down 1.63 percent to HK$12.05.
The blue chip Hang Seng Index rose 0.1 percent, or 15.25 points, to 14,889.10.
Volume was slightly below recent averages with HK$19.9 billion (US $2.55 billion) worth of shares exchanged.
The market shut before industrial and telecoms conglomerate Hutchison Whampoa Ltd posted a slightly better than expected 10 percent rise in first half net profit to HK$11.82 billion as strength in its ports and energy business offset start-up losses in its 3G telecoms business.
Sister property firm Cheung Kong (Holdings) Ltd, Asia tycoon Li Ka-shing's second flagship company, posted a 51.6 percent jump in first half net profit to HK$10.37 billion, as a property boom spurred fresh new home sales and from the revaluation of its property in line with accounting changes.
Dealers held mixed views on the reports.
"Hutchison was quite in line, Cheung Kong maybe a bit better than expected although most of the earnings come from the revaluation of their property. I think it will provide some incentive for the Hang Seng Index tomorrow, but gains will be limited," said Kenny Tang, associate director at Tung Tai Securities.
Francis Lun at Fulbright Securities focused on Hutchison's 3G telephone losses and expects the market to open lower on Friday.
"It's the mother of all losses for 3G and without the property revaluation they would have reported a loss so it's quite disappointing," Lun said.
Hutchison closed up 1.18 percent higher at HK$77.10 ahead of the report.
Cheung Kong closed up 0.12 percent at HK$81.15.
China's largest oil producer PetroChina Co Ltd was also a top performer thanks to higher oil prices and after the firm posted a 36 percent jump in first half earnings on Wednesday, largely in line with expectations.
China's number 2 cellular phone operator China Unicom reported a slightly better than expected 19.4 percent fall in first half profits after the market shut.
The shares ended flat at HK$6.25.

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