By Donny Kwok and Claire Zhang
HONG KONG, March 10 (Reuters) - Hong Kong shares ended flat on Wednesday, barely in positive territory after three straight sessions of gains and as investors took a breather after recent strength. Mainland stocks slipped on worries over possible monetary tightening.
Forecast-beating results from Cathay Pacific Airways and CITIC Pacific lent support. The city's dominant air carrier Cathay Pacific rose 4.68 percent to HK$15.20, its highest close since July 2008, after reporting its best half-year results in two years.
CITIC Pacific rose 7.47 percent, its biggest single-day gain in percentage terms in four months, to a seven-week closing high at HK$18.98. The steel-to-property conglomerate said it returned to the black in 2009 with a profit of HK$5.95 billion, beating a forecast of HK$5.08 billion.
'The market turned very cautious as the China market slipped on concern over a tighter monetary policy ahead of some economic data,' said William Lo, an analyst at Ample Finance Group. 'It was better to square positions and re-enter the market later if there was nothing happening.'
The benchmark Hang Seng Index ended up 0.74 points at 21,208.29. The China Enterprises Index of top locally listed mainland Chinese stocks ended up 0.06 percent at 12,217.33.
Turnover fell to HK$55.15 billion ($7.12 billion) from Tuesday's HK$58.49 billion.
China Mobile gained 0.14 percent to its highest close in a week at HK$74.20. After the market closed, the world's largest mobile carrier said it planned to buy 20 percent of Shanghai Pudong Development Bank at a discount for 39.8 billion yuan ($5.83 billion).
PCCW, which on Tuesday posted an 18 percent rise in 2009 profit with a final dividend of HK$0.133, closed up 4.52 percent at HK$2.31. Intraday, it rose 6.8 percent to a 10-month high of HK$2.36.
Bargain hunters were attracted by PCCW's solid earnings and relatively high dividend payout, brokers said.
Pacific Century Premium Developments ended up 20.16 percent at HK$2.92, pulling back from a 22-month high of HK$3. The developer posted a 16 percent rise in 2009 profit to HK$594 million ($76.5 million).
Brokers said Chinese property stocks remained firm as concern over measures to curb prices eased. Yuexiu Property firmed 2.8 percent to an eight-week closing high and Shimao Property rising 1.68 percent to a nine-week high.
SHANGHAI EASES ON MONETARY TIGHTENING CONCERN
China's key stock index slid 0.66 percent on Wednesday, with property and auto shares weak amid concerns over possible monetary tightening ahead of inflation data due later this week, while the government released upbeat trade data.
The Shanghai Composite Index ended at 3,048.927 points, after rising 0.52 percent on Tuesday.
The index has been confined to a 3,000 to 3,100 point range for nearly two weeks, weighed down by worries that the authorities, who are already reining in credit, will tighten monetary policy further.
Economists expect China's February CPI to rise 2.3 percent from a year earlier, according to the median forecast in a Reuters survey, although analysts on Wednesday noted rising concern that the data could exceed expectations, especially after strong trade figures.
'The market is waiting on CPI and PPI data,' said Zheng Weigang, analyst at Shanghai Securities.
China's top banking regulator said, however, that the country was very unlikely to suffer serious inflation this year.
Losing Shanghai stocks outnumbered winners by 686 to 204, while turnover fell to 99 billion yuan ($14.51 billion) from Tuesday's 107 billion yuan.
Property shares eased with the Shanghai property index down 1.44 percent after rising more than 4 percent over the previous two sessions on government officials' comments suggesting that no fresh moves were imminent to cool the property market.
'The index came under pressure as it neared 3,100 points, with liquidity worries lingering,' said Li Wenhui, senior analyst at Huatai Securities in Nanjing.
The General Administration of Customs announced just before the end of the morning session that China's exports jumped 45.7 percent in February from a year earlier, following a 21.0 percent rise in January, beating forecasts.
'The trade data is far beyond expectations and is positive for the market but it also brings a chance for further monetary policy tightening,' said Nanjing Securities analyst Wen Lijun.
Chongqing Changan Automobile sank 2.79 percent to 12.89 yuan and SAIC Motor sagged 3.74 percent to 21.13 yuan.
China's passenger car sales in February rose 55 percent from a year earlier, the official industry association said on Tuesday, moderating from January's heated 116 percent rise.
Baoshan Iron and Steel climbed 1.31 percent to 8.53 yuan, boosted by an improved earnings outlook.
((Editing by Chris Lewis))
((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters Messaging: donny.kwok.reuters.com@reuters.net)) Pan-Asia...... Japan........ S.Korea.... S.E. Asia............ Hong Kong... Taiwan..... Australia/NZ......... India....... China...... OTHER MARKETS: Wall Street........... Gold......... Currency.. Eurostocks........... Oil........... JP bonds... ADR Report.......... LME metals.. US bonds... Stocks News US... Stocks News Europe... DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Taiwan diary Wall Street Week Ahead Eurostocks Week Ahead World forecasts TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Hong Kong Dollar LME price overview Keywords: MARKETS HONGKONG CHINA STOCKS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HONG KONG, March 10 (Reuters) - Hong Kong shares ended flat on Wednesday, barely in positive territory after three straight sessions of gains and as investors took a breather after recent strength. Mainland stocks slipped on worries over possible monetary tightening.
Forecast-beating results from Cathay Pacific Airways and CITIC Pacific lent support. The city's dominant air carrier Cathay Pacific rose 4.68 percent to HK$15.20, its highest close since July 2008, after reporting its best half-year results in two years.
CITIC Pacific rose 7.47 percent, its biggest single-day gain in percentage terms in four months, to a seven-week closing high at HK$18.98. The steel-to-property conglomerate said it returned to the black in 2009 with a profit of HK$5.95 billion, beating a forecast of HK$5.08 billion.
'The market turned very cautious as the China market slipped on concern over a tighter monetary policy ahead of some economic data,' said William Lo, an analyst at Ample Finance Group. 'It was better to square positions and re-enter the market later if there was nothing happening.'
The benchmark Hang Seng Index ended up 0.74 points at 21,208.29. The China Enterprises Index of top locally listed mainland Chinese stocks ended up 0.06 percent at 12,217.33.
Turnover fell to HK$55.15 billion ($7.12 billion) from Tuesday's HK$58.49 billion.
China Mobile gained 0.14 percent to its highest close in a week at HK$74.20. After the market closed, the world's largest mobile carrier said it planned to buy 20 percent of Shanghai Pudong Development Bank at a discount for 39.8 billion yuan ($5.83 billion).
PCCW, which on Tuesday posted an 18 percent rise in 2009 profit with a final dividend of HK$0.133, closed up 4.52 percent at HK$2.31. Intraday, it rose 6.8 percent to a 10-month high of HK$2.36.
Bargain hunters were attracted by PCCW's solid earnings and relatively high dividend payout, brokers said.
Pacific Century Premium Developments ended up 20.16 percent at HK$2.92, pulling back from a 22-month high of HK$3. The developer posted a 16 percent rise in 2009 profit to HK$594 million ($76.5 million).
Brokers said Chinese property stocks remained firm as concern over measures to curb prices eased. Yuexiu Property firmed 2.8 percent to an eight-week closing high and Shimao Property rising 1.68 percent to a nine-week high.
SHANGHAI EASES ON MONETARY TIGHTENING CONCERN
China's key stock index slid 0.66 percent on Wednesday, with property and auto shares weak amid concerns over possible monetary tightening ahead of inflation data due later this week, while the government released upbeat trade data.
The Shanghai Composite Index ended at 3,048.927 points, after rising 0.52 percent on Tuesday.
The index has been confined to a 3,000 to 3,100 point range for nearly two weeks, weighed down by worries that the authorities, who are already reining in credit, will tighten monetary policy further.
Economists expect China's February CPI to rise 2.3 percent from a year earlier, according to the median forecast in a Reuters survey, although analysts on Wednesday noted rising concern that the data could exceed expectations, especially after strong trade figures.
'The market is waiting on CPI and PPI data,' said Zheng Weigang, analyst at Shanghai Securities.
China's top banking regulator said, however, that the country was very unlikely to suffer serious inflation this year.
Losing Shanghai stocks outnumbered winners by 686 to 204, while turnover fell to 99 billion yuan ($14.51 billion) from Tuesday's 107 billion yuan.
Property shares eased with the Shanghai property index down 1.44 percent after rising more than 4 percent over the previous two sessions on government officials' comments suggesting that no fresh moves were imminent to cool the property market.
'The index came under pressure as it neared 3,100 points, with liquidity worries lingering,' said Li Wenhui, senior analyst at Huatai Securities in Nanjing.
The General Administration of Customs announced just before the end of the morning session that China's exports jumped 45.7 percent in February from a year earlier, following a 21.0 percent rise in January, beating forecasts.
'The trade data is far beyond expectations and is positive for the market but it also brings a chance for further monetary policy tightening,' said Nanjing Securities analyst Wen Lijun.
Chongqing Changan Automobile sank 2.79 percent to 12.89 yuan and SAIC Motor sagged 3.74 percent to 21.13 yuan.
China's passenger car sales in February rose 55 percent from a year earlier, the official industry association said on Tuesday, moderating from January's heated 116 percent rise.
Baoshan Iron and Steel climbed 1.31 percent to 8.53 yuan, boosted by an improved earnings outlook.
((Editing by Chris Lewis))
((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters Messaging: donny.kwok.reuters.com@reuters.net)) Pan-Asia...... Japan........ S.Korea.... S.E. Asia............ Hong Kong... Taiwan..... Australia/NZ......... India....... China...... OTHER MARKETS: Wall Street........... Gold......... Currency.. Eurostocks........... Oil........... JP bonds... ADR Report.......... LME metals.. US bonds... Stocks News US... Stocks News Europe... DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Taiwan diary Wall Street Week Ahead Eurostocks Week Ahead World forecasts TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Hong Kong Dollar LME price overview Keywords: MARKETS HONGKONG CHINA STOCKS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.