Provision fears hurt Hutchison

Hutchison Whampoa went against the market trend yesterday on fears the company may make a huge provision against its property holdings when it announces last year's results today.

Shares in the Li Ka-shing-controlled conglomerate dropped as much as 50 cents before closing 25 cents down at $57.25, even as the Hang Seng Index surged.

Brokers said Hutchison might take up to a $2 billion provision for its share of the $6.06 billion Hunghom land site it bought with associate Cheung Kong (Holdings) at a government land auction close to the property market's peak last year.

Hutchison was also expected to make a provision of up to $1.2 billion for the decline in its stock holdings caused by the regional financial turmoil.