Hong Kong Stocks Swing Between Gain, Loss on Earnings, Land Sale
Macau casino operator SJM gained as much as 2.4 percent. Cosco Pacific Ltd. (1199), which operates a port in Greece, rebounded 0.8 percent after slumping yesterday amid concern Europe’s debt crisis may worsen after Greek voters flocked to anti-bailout parties and France elected its first Socialist president in two decades. Agile Property Holdings Ltd., a mainland developer, sank 4.2 percent after a report residential land sales plunged in major Chinese cities.
The Hang Seng Index slid 0.1 percent to 20,525.95 at the midday-trading break, after rising as much as 0.5 percent. The same number of stocks gained as fell on volume 24 percent below the 30-day intraday average. The gauge yesterday fell the most in six months. The Hang Seng China Enterprises Index (HSCEI) of mainland stocks slid 0.4 percent to 10,532.65 today.
“In the short term, the Hong Kong market is still going lower,” said Alex Wong, asset-management director at Ample Capital Ltd. in Hong Kong. “The outlook isn’t too good. Yesterday was oversold,” causing some rebound in the market, Wong said.
Hong Kong’s benchmark index has risen about 11 percent this year through yesterday as China eased its monetary policy and the U.S.economy showed signs of recovery. Shares on the index traded at 10.4 times estimated earnings on average, compared with 13 times on the Standard & Poor’s 500 Index, while the average on the Stoxx Europe 600 Index is 10.6.
SJM, Man Wah
SJM rose as much as 2.4 percent to HK$17.26 after the gaming company founded by billionaire Stanley Ho reported a 22 percent increase in first-quarter profit as Chinese tourists drove up gambling revenue.
Man Wah Holdings Ltd. (1999), a sofa maker, rose 1.5 percent to HK$4.07 after saying sales last year rose to $539.3 million from $471.7 million from the previous year.
Cosco Pacific gained 0.8 percent to HK$10.62 and HSBC Holdings Plc, Europe’s largest lender by market value, advanced 1.3 percent to HK$69.60, rebounding from losses yesterday amid concern grew a weakening commitment to government budget cuts in Europe may worsen the debt crisis.
Agile Property sank 4.2 percent to HK$9.28, while Soho China Ltd. (410), a property developer in central Beijing and Shanghai, retreated 3.2 percent to HK$5.79. Residential land sales in major Chinese cities plunged 92 percent in the period from April 30 to May 6 from the previous week, real estate website Soufun Holdings Ltd. said yesterday in e-mailed statement.
Hang Seng Index (HSI) futures expiring this month rose 0.2 percent to 20,343. The HSI Volatility Index (VHSI) slid 4.4 percent to 21.32, indicating traders expect a swing of about 6.1 percent in the benchmark index during the next 30 days.
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