Market Open: Hang Seng seen flat as fiscal cliff offsets positive China data
The benchmark Hang Seng is expected to trade in thin volumes on Tuesday and to hug its current level, with investors still cautious building positions amid worries that the world's largest economy may fall into recession as a result of the so-called “fiscal cliff”.
Sentiment was bolstered a bit by better-than-expected China data on Monday, which still failed to give a strong boost to the market which is more focused on the key 18th People's Congress, which will decide the leadership team to rule China in the next decade.
Overnight, the Standard & Poor's 500-stock index closed up 0.18 points, or 0.01 per cent, at 1,380.03. The Nasdaq Composite shed 0.62 points, or 0.02 per cent, to finish at 2,904.26. In London, the FTSE-100 Index lost 2.41 points, or 0.04 per cent, to finish at 5,767.27.
Hot Stocks of the Day:
China Pacific Insurance (2601.HK)
The insurer said accumulated gross premium income of its two units, China Pacific Life Insurance and China Pacific Property Insurance stood at 81.8 billion yuan and 56.9 billion yuan respectively during the first ten months this year, up 0.4 per cent and 11.6 per cent year-on-year.
Zhongyu Gas (3633.HK)
The gas supplier said net profit surged 191 per cent to 32.3 million yuan during the third quarter this year. Revenue rose 62 per cent during the period to 612 million yuan.
Far East Consortium International (0035.HK)
The company said it will suspend the propose issue of US denominated bonds "under current market conditions". It said in November that it plans to the bonds and Bloomberg later cited sources saying the firm plans to sell about US$200 million of bonds due 2017 at 5.5 per cent.
Next Media (0282.HK)
The company issued a profit warning overnight, saying is expected to record a substantial loss for the six months ended 30 September due to the write-off of some assets and equipment in Taiwan.