Friday, October 9, 2009

Hong Kong Stock Market Wrap Oct. 8th, 2009

Chalco (2600 HK) is rumoured to partner with its parent for acquiring UC Rusal through its international share placement in December, according to a Russian Newspaper Vedomosti.

Rumour has it that there are 8 billion shares of China Strategic Holdings (235 HK) flowing in market at a price of HK$0.25 per share, amounting to HK$2 billion. It is uncertain whether these shares are newly issued or offloaded by shareholders. China Strategic Holdings’ acquisition deal on AIG’s Taiwan branch is yet to settled.

Cosco Pacific (1199 HK) expected its port and container business to improve in the second half on global economic turnaround and rising Baltic Index. The company said it will consider any chances to takeover ports, especially overseas ports. However, it has no actual schedule of any takeover at this stage.

Two convertible bonds of Fu Ji Food and Catering Service (1175 HK) may suffer technical defaults as the company has delayed to announce its first half results. The company has appointed Deloitte Touche Tohmatsu as an independent financial adviser to assist in reviewing certain matters arising from the delay of the release of its first half results. It said that it has not defaulted on any repayment obligation under any of the convertible bonds, the term facility agreement, and all other loan agreements to which the company and its subsidiaries.

Golden Resources Development International (677 HK) has issued a positive profit alert and expected its results to record a substantial profit for the six months ended September 30 as compared to a net loss for the correspondence period last year. The Board said the gain might be attributable to its share of the profit of an associate, which is engaged in property development and investment in Malaysia.

HSBC (5 HK) has entered negotiations to acquire the Asian private banking assets of ING for US$1.5 billion, to compete with Singapore’s DBS Group Holdings Ltd, according to the Wall Street Journal. The deal is expected to be finalized later this month. Meanwhile, HSBC is also in advanced talks to acquire Royal Bank of Scotland’s assets in China, India and Malaysia.

Hunan Nonferrous Metals Corp (2626 HK) announced an accident happened in one of its mines on October 8, twenty-six workers were dead while five were injured. The accident is now under investigation.

China MediTech of Hutchison (13 HK) is partnering with a US firm to form a joint venture on natural and organic consumer products in Asia. Their products will be available in Hong Kong, Taiwan and Singapore by year-end through Hutchison Whampoa’s retail distribution platforms like Watsons and ParknShop.

Lumena Resources (67 HK) plans to sell US dollar-denominated senior bonds to fund expansion and repay a US$123 million (HK$959 million) loan from BOCI Leveraged & Structured Finance Ltd. Price and amount of bond units are yet to be confirmed.

New World China Land (917 HK) has posted a 33 per cent fall in its net profit to HK$1.359 billion for the first half, compared with a year ago. Earnings per share were HK$0.35. An interim dividend of HK$0.06 per share was declared.

New World Development (17 HK), one of the major property developers in Hong Kong, its net profit dropped 7 per cent to HK$2.084 billion for the first half, compared with a year ago. The company attributed the decline to the falling transaction volumes and the decline in property valuations. Earnings per share were HK$0.55. An interim dividend of HK$0.3 per share were declared.

Shimao Property (813 HK) and its Shanghai Shimao unit have bought a 30,000-square-meter land lot in Xiamen for 709 million yuan. The developer plans to build two high-rise buildings in the site, consisting of offices, Soho, hotels and commercial facilities within the buildings.

Sincere Watch (Hong Kong) (444 HK) Ltd announced that it is proposed to sell 99.42 per cent stake for HK$630 million by its executive director and several other institutions. The price is a 24.71 per cent discount to the company’s value in March.

TC Interconnect Holdings (515 HK) announced that it plans to expand its LED streetlamp business in the mainland market on a higher gross margin. The company said it has sufficient capital to produce LED streetlamp in the first year but extra capital inflow may be needed for the future projects. The company has no plan to raise financing through share placement.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard