Sept. 24 (Bloomberg) -- Hong Kong stocks rose for a fourth week as Nike Inc.’s better-than-estimated profit boosted supplier Yue Yuen Industrial (Holdings) Ltd., while PCCW Ltd. gained after the Sing Tao Daily said the company plans to seek a separate listing for a unit.
Yue Yuen, the world’s largest supplier of branded athletic shoes, advanced 1.6 percent. PCCW, Hong Kong’s No. 1 phone company, jumped 3.7 percent. Among stocks that debuted today, Magic Holdings International Ltd., which makes cosmetic facial masks, soared 37 percent in its trading debut. HSBC Holdings Plc slid 0.6 percent after a person briefed on the matter said the company’s chief executive officer will step down.
“We’re set for an ongoing rally in the fourth quarter with company earnings as a major support,” said Francis Lun, general manager at Fulbright Securities Ltd. For HSBC, “whoever takes over doesn’t really matter as long as they focus on China. People are looking at it as if it’s a soap opera.”
The Hang Seng Index climbed 0.3 percent to close at 22,119.43, extending its gains in a holiday-shortened week to 0.7 percent, its fourth straight weekly advance. Markets were shut yesterday for the Mid-Autumn Festival. The Hang Seng China Enterprises Index of so-called H shares of Chinese companies rose 0.2 percent to 12,218.60.
Shares fell earlier, dragging the main Hang Seng gauge down by 0.4 percent, following an unexpected increase in U.S. jobless claims. The Hang Seng Index has surged 17 percent from its low this year on May 25 amid optimism the U.S. economy will avoid falling back into a recession and that China will ease monetary policy to spur growth.
Stocks on the Hang Seng trade at an average 14.2 times estimated profit, compared with 12.5 times on May 25.
Yue Yuen rose 1.6 percent to HK$28.80. Nike, the world’s largest maker of athletic shoes, said first-quarter profit rose 8.9 percent to $559 million, or $1.14 a share. That exceeded the average estimate of $1 in a Bloomberg survey of analysts. The company also reported orders for China surged 25 percent.
PCCW gained 3.7 percent to HK$2.84. The company plans to seek a separate listing for its Now TV pay-television unit, Sing Tao Daily reported, citing people it didn’t identify. PCCW has “no firm plans yet” for the spinoff, Chairman Richard Li said in a mobile-phone message today.
Magic rallied 37 percent to HK$4.51 on its trading debut. The company sold 200 million shares at HK$3.30 each, raising net proceeds of HK$608 million ($78 million), according to a company statement.
Initial Public Offering
MicroPort Scientific Corp. jumped 36 percent to HK$8.29 in its first trading day. The maker of equipment for keyhole surgery sold 252.7 million shares at HK$6.10 apiece in an initial public offering, raising net proceeds of HK$1.43 billion.
Changfeng Axle (China) Co., another debutant, surged 13 percent to HK$4.50, after sliding as much as 3.8 percent.
HSBC, Europe’s biggest bank, lost 0.6 percent to HK$80.60. Michael Geoghegan will step down as chief executive at the end of the year, and be replaced by investment-banking head Stuart Gulliver, said a person briefed on the matter, who spoke anonymously because the changes haven’t been announced.
This week, spokesman Patrick McGuinness described as “nonsense” a Financial Times report that Geoghegan had threatened to quit if he wasn’t named chairman. The personnel turnover was triggered by Chairman Stephen Green’s Sept. 7 decision to resign and become trade minister for the U.K. He will be replaced by Finance Director Douglas Flint, the person said.
Lenovo Group Ltd., China’s biggest maker of personal computers, slipped 1.4 percent to HK$4.74. The company said the pace of growth in the country’s PC market has seen a “significant” drop after some strong gains.
Twenty-six stocks climbed while 17 dropped among the 45 members of the Hang Seng Index. Futures on the gauge rose 0.8 percent to 22,211.
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