Market Open: Hang Seng seen lower on profit taking, IMF downgrade

Hong Kong stocks are expected to come under selling pressure on Thursday as investors take profit on concerns about company earnings and also on fears of a global slowdown after the International Monetary Fund (IMF) cut its world growth forecast for 2013.

The IMF Fund followed World Bank in cutting its global forecast for 2013, and now expects the global economy to grow 3.5 per cent year-on-year, compared with a 3.6 per cent  estimat in October.

On the earnings side, Luxury brand Coach (6388.HK) posted a 2 per cent growth in net profit to US$350 million for the second quarter ended December 29. Citic Securities (6030.HK) said its net profit declined 63 per cent to 4.3 billion yuan from a year earlier in 2012.

Sentiment may also get hurt as Sino Oil & Gas (0702.HK) dropped its share placement at the last minute on Wednesday night after an anchor investor failed to come through with an order. On the initial public offering front, toy maker Quali-Smart (1348.HK) surged 11 per cent on Wednesday, which was less than the 39 per cent surge recorded by Speedy Global in its debut last week. Time Watch will open its book on Thursday and plans to start trading on February 5.