Market Open: Hang Seng seen flat at 14-month high on mixed earnings
The benchmark Hang Seng Index is expected to hold its ground after hitting a 14-month high despite a mixed bag of earnings overnight from major Chinese firms, with Bank of China (3988.HK) beating estimates while China Unicom (0762.HK) missed forecasts.
"The benchmark index may see some consolidation after third-quarter earnings posted short-term pressure on some heavyweight issues", said Matthew Kwok, vice president for global investment strategy, Haitong International Securities Group. Yet he added overall sentiment has improved a lot and could support the index to test fresh high by the year end.
Overnight, the Standard & Poor's 500-stock index closed up 4.22 points, or 0.30 per cent, to close at 1,412.97. The Nasdaq Composite advanced 4.42 points, or 0.15 percent, to end at 2,986.12. In London, the FTSE-100 Index closed flat at 5,805.05.
Hot Stocks of the Day:
Bank Of China (3988.HK)
The nation's No.4 bank by assets posted its strongest profit growth of this year, posting a estimate-beating 17 per cent increase in net profit to 34.8 billion yuan from July to September. Analysts are worried about its bad loan coverage in future after it set aside less capital of its loan book to cover bad loans from a year earlier.
ZTE (0763.HK)
The nation's No.2 telecommunication gear maker ZTE, China's second-largest telecommunications equipment manufacturer, reported a net loss of 1.95 billion yuan (HK$2.42 billion) in the third quarter, its first quarterly loss since listing in Hong Kong in 2004. The stock has slumped since the firm issued a profit warning on October 14.
China Unicom (0762.HK)
The nation's second biggest mobile phone operator posted a 27 per cent rise in net profit to 2.02 billion yuan due to an increase in 3G network subscribers, although the result still missed market estimates from analysts polled by both Reuters and Bloomberg.
BBMG (2009.HK)
The cement maker said net third-quarer profit slumped 41 per cent to 421 million yuan.
Maanshan Iron (0323.HK)
The steelmaker sank into the red from a year earlier in the third quarter, posting 1.24 billion yuan of net losses, as its final products prices fell faster than that of raw materials.
Greatwall Motor (2333.HK)
The automaker posted a 101 per cent jump in third quarter net profit to 1.49 billion yuan as sales volume of automobiles increased.
