Stock Talk
PUBLISHED : Friday, 19 October, 2012, 8:21am
UPDATED : Friday, 19 October, 2012, 7:38pm

Market Open: Hong Kong stocks seen lower on profit taking, earnings jitters

Hong Kong stocks are expected to fall on profit-taking after Thursday's rally and due to worries over US corporate earnings, with both Google and Microsoft falling short of market estimates.

Hong Kong stocks are expected to fall on profit-taking after Thursday's rally and due to worries over US corporate earnings, with both Google and Microsoft falling short of market estimates.

Meanwhile, Chinese state-owned enterprises have seen January-to-September profit fall 11.4 per cent year-on-year, according to the Ministry of Finance, although September profit grew 2.8 per cent month-on-month.

“As the economy is showing signs of stabilisation, we believe that Beijing is even less likely to launch any large-scale stimulus. We sense that the leaders in Beijing felt more comfortable about managing the economy than what the market felt, and latest data seems to suggest that the leaders were right,’ to Credit Suisse economist Tao Dong.

Overnight, the Standard & Poor's 500-stock index closed down 3.57 points, or 0.24 per cent, to close at 1,457.34. The Nasdaq Composite lost 31.26 points, or 1.01 per cent, to 3,072.87. In London, the FTSE-100 Index added 6.14 points, or 0.10 per cent, to end at 5,917.05.

Hot Stocks of the Day:

MGM China (2282.HK)
The casino operator said yesterday that it would develop a five-star luxury resort and casino with 500 tables in Cotai, the new gaming hot spot in Macau. The company said it paid a 450 million patacas initial payment for a 25-year land lease from the government.

China Merchants China Direct Investments (0133.HK)

The company said it is looking to sell its shareholdings in the A shares of China Merchants Bank and Industrial Bank. It currently owns 0.25 per cent of CMB and 0.41 per cent of Industrial Bank.

Sun Hung Kai Properties (0016.HK)

The Hong Kong developer said it will launch sales of the second phase of The Wings project in Tseung Kwan O for up to HK$15,000 per square foot by the end of November.

Metallurgical Corporation of China (1618.HK)
The company said newly-signed contracts from January to September this year fell 23 per cent to 179 billion yuan. Overseas new contracts are valued at 12.35 billion yuan.

China Communications Construction (1800.HK)
The company said its controlling shareholder plans to continue lift its A share stake to 63.77 per cent from 63.72 per cent in the next 12 months.

 

Share

 

Send to a friend

To forward this article using your default email client (e.g. Outlook), click here.

Enter multiple addresses separated by commas(,)

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive