HONG KONG, Oct 5 (Reuters) - Hong Kong stocks are set to fall
on Tuesday as the benchmark index pulls back from Monday's
ten-month closing high in technically overbought conditions,
prompted by an easing on Wall Street.
U.S. stocks fell in light trading on Monday as investors took profit on recent gains, using middling economic data and worries about euro zone debt as impetus to shed long positions.
Traders at Standard Chartered said in a note to clients that profit-taking was expected, particularly in sectors such as metals and mining stocks, the top performers in Hong Kong over the past five sessions on the back of a weak dollar.
Hong Kong's Hang Seng Index closed at a more than
10
month high as a weaker dollar boosted appetites for equities and oil stocks soared as crudes prices rose.
The index finished up 1.2 percent at 22,618.66 with turnover on the Hong Kong stock exchange rising to nearly HK$100 billion. But with the index's relative strength index rising to 74, a level that indicates the market is technically overbought, further gains may be limited.
A recovery in the local stock market, which has risen more than 10 percent since the end of August, has prompted a slew of companies looking to raise capital tap the primary market.
American International Group Inc's Asian unit, AIA, set a price range for its initial public offering in which it plans to raise up to $14.9 billion. Including an overallotment option, the IPO could raise up to $17.1 billion, making it Hong Kong's largest-ever listing.
Elsewhere in Asia, Japan's Nikkei was a tad weaker, while South Korea's KOSPI was down 0.3 percent.
STOCKS TO WATCH:
- HSBC Holdings Plc Chief Executive Michael Geoghegan said the bank was in talks to buy a majority stake in South African lender Nedbank.
- Far East Consortium International Ltd expects to gain HK$450 million ($58 million) from a proposed spinoff of hotel unit Kosmopolito. It has set the offering price of Kosmopolito at HK$2.20 per share in a HK$1.2 billion Hong Kong listing arranged by Ample Bonus, Credit Suisse, Morgan Stanley and the Royal bank of Scotland. For statement, click http://www.hkexnews.hk/listedco/listconews/sehk/20101005/LTN20101005005.pdf
- Siberian Mining Group Co Ltd has sold 60 million shares at HK$0.225 each, a discount of 23 percent to the average closing price per share of HK$0.2925 for the last 10 consecutive trading days. Proceeds from the HK$13.5 million share sale will be used to pay debts and for future business. Click below for a statement. http://www.hkexnews.hk/listedco/listconews/sehk/20101004/LTN201010041770.pdf
- Hao Tian Resources Group said it planned to buy West China, a company owned by major shareholder Li Shao Yu and is in the process of acquiring a mine in the Xinjiang region. http://www.hkexnews.hk/listedco/listconews/sehk/20101004/LTN201010041768.pdf
- Hengli Properties Development (Group) Ltd plans to raise HK$67 million ($8.6 million) in a three-for-five rights issue. The Subscription price of HK$0.10 per share represents a discount of 61 percent to the theoretical ex-rights price of HK$0.25625 per share. http://www.hkexnews.hk/listedco/listconews/sehk/20101004/LTN201010041754.pdf
- Zijin Mining Group Co Ltd shares were suspended pending further announcement.
MARKET SUMMARY *Wall Street falls as investors book gains *Treasuries up on stock slide, possible Fed buys *Dollar hits 2 -1/2- year low vs Swiss franc *Oil dips on dollar's gain, port problems support
(Reporting by Vikram S Subhedar, Editing by Chris Lewis)
((vikram.subhedar@thomsonreuters.com; +852 2843 6975; Reuters Messaging: vikram.subhedar.reuters.com@reuters.net)) ASIA-PACIFIC MARKETS 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 ($1=6.827 Yuan) Keywords: MARKETS HONGKONG 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.
U.S. stocks fell in light trading on Monday as investors took profit on recent gains, using middling economic data and worries about euro zone debt as impetus to shed long positions.
Traders at Standard Chartered said in a note to clients that profit-taking was expected, particularly in sectors such as metals and mining stocks, the top performers in Hong Kong over the past five sessions on the back of a weak dollar.
Hong Kong's Hang Seng Index closed at a more than
10
month high as a weaker dollar boosted appetites for equities and oil stocks soared as crudes prices rose.
The index finished up 1.2 percent at 22,618.66 with turnover on the Hong Kong stock exchange rising to nearly HK$100 billion. But with the index's relative strength index rising to 74, a level that indicates the market is technically overbought, further gains may be limited.
A recovery in the local stock market, which has risen more than 10 percent since the end of August, has prompted a slew of companies looking to raise capital tap the primary market.
American International Group Inc's Asian unit, AIA, set a price range for its initial public offering in which it plans to raise up to $14.9 billion. Including an overallotment option, the IPO could raise up to $17.1 billion, making it Hong Kong's largest-ever listing.
Elsewhere in Asia, Japan's Nikkei was a tad weaker, while South Korea's KOSPI was down 0.3 percent.
STOCKS TO WATCH:
- HSBC Holdings Plc Chief Executive Michael Geoghegan said the bank was in talks to buy a majority stake in South African lender Nedbank.
- Far East Consortium International Ltd expects to gain HK$450 million ($58 million) from a proposed spinoff of hotel unit Kosmopolito. It has set the offering price of Kosmopolito at HK$2.20 per share in a HK$1.2 billion Hong Kong listing arranged by Ample Bonus, Credit Suisse, Morgan Stanley and the Royal bank of Scotland. For statement, click http://www.hkexnews.hk/listedco/listconews/sehk/20101005/LTN20101005005.pdf
- Siberian Mining Group Co Ltd has sold 60 million shares at HK$0.225 each, a discount of 23 percent to the average closing price per share of HK$0.2925 for the last 10 consecutive trading days. Proceeds from the HK$13.5 million share sale will be used to pay debts and for future business. Click below for a statement. http://www.hkexnews.hk/listedco/listconews/sehk/20101004/LTN201010041770.pdf
- Hao Tian Resources Group said it planned to buy West China, a company owned by major shareholder Li Shao Yu and is in the process of acquiring a mine in the Xinjiang region. http://www.hkexnews.hk/listedco/listconews/sehk/20101004/LTN201010041768.pdf
- Hengli Properties Development (Group) Ltd plans to raise HK$67 million ($8.6 million) in a three-for-five rights issue. The Subscription price of HK$0.10 per share represents a discount of 61 percent to the theoretical ex-rights price of HK$0.25625 per share. http://www.hkexnews.hk/listedco/listconews/sehk/20101004/LTN201010041754.pdf
- Zijin Mining Group Co Ltd shares were suspended pending further announcement.
MARKET SUMMARY *Wall Street falls as investors book gains *Treasuries up on stock slide, possible Fed buys *Dollar hits 2 -1/2- year low vs Swiss franc *Oil dips on dollar's gain, port problems support
(Reporting by Vikram S Subhedar, Editing by Chris Lewis)
((vikram.subhedar@thomsonreuters.com; +852 2843 6975; Reuters Messaging: vikram.subhedar.reuters.com@reuters.net)) ASIA-PACIFIC MARKETS 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 ($1=6.827 Yuan) Keywords: MARKETS HONGKONG 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.
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