HONG KONG |
Tue Feb 7, 2012 7:54pm EST
HONG KONG Feb 8 (Reuters) – Hong Kong shares could
start higher on Wednesday, with Chinese banking, property and
energy stocks in focus after a slew of measures announced by
Beijing, but gains could be limited by investors following chart
signals.
Trading volumes will likely be muted as Greek debt
restructuring talks stretch on and ahead of fresh China January
data for inflation and trade on Thursday and Friday.
On Tuesday, the China Enterprises Index closed down
0.6 percent at 11,499.8 points, while the Hang Seng Index
ended down 0.1 percent at 20,699.2 points.
The Hang Seng Index had opened higher on Tuesday, but
retreated from intraday gains with losses limited at around
20,564, a level that has supported the benchmark for the last
three sessions.
It is seen capped on the upside by its 250-day moving
average, currently at 21,043.2 as investors watch the outcome of
Greek debt-restructuring talks. If there’s a positive ending,
the HSI could break above 21,017, the bottom of a 708-point gap
that opened between Aug. 4 and 5.
Its 200-day moving average is seen as offering support,
currently at 20,477.4 points.
Overall turnover in Hong Kong was the lowest in seven
sessions, of which short selling accounted for 7.65 percent, the
lowest since Jan. 16.
Elsewhere in Asia, Japan’s benchmark Nikkei was up
0.5 percent at 8,962.6 points, while the Korea Composite Stock
Price Index (KOSPI) was up 0.4 percent at 1,989.7 points
at 0040 GMT.
FACTORS TO WATCH:
* Chinese banks extended about 800 billion yuan ($126.9
billion) in new loans in January, including 320 billion yuan
from China’s “Big Four” state lenders, the official China
Securities Journal reported on Wednesday, citing unidentified
sources.
* China will raise the ceiling for retail prices of gasoline
and diesel by 3 to 4 percent from Wednesday, the first hike in
10 months and a move that lifts prices to record highs and can
help refineries improve margins.
* Banks must provide loans to first-home buyers, the
People’s Bank of China (PBOC) said in a statement on Tuesday,
the first clear call to support mortgage lending since starting
a policy tightening cycle to calm the property market two years
ago.
* At least two of the top 10 shareholders in miner Xstrata
plan to vote against a takeover by commodities trader
Glencore , threatening the creation of a
powerhouse spanning mining, agriculture and trading.
* KFC parent Yum Brands Inc plans to raise prices in
China in 2012 to help offset higher food and labor costs and
boost profitability in its most important market, Chief
Financial Officer Rick Carucci said on Tuesday.
* Three cornerstone investors, including China Investment
Corp, China Petrochemical Corp (Sinopec Group) — parent of
listed China Petroleum & Chemical Corp (Sinopec)
— and EIG Global Energy Partners, pledged $350
million toward Canadian oil explorer Sunshine Oilsands Ltd’s
Hong Kong initial public offering, a source with direct
knowledge of the IPO plan told Reuters on Tuesday.
* China Longyuan Power Group Corp Ltd said its
power generation for January on consolidated basis amounted to
2.02 million MWh, a decrease of 14.85 percent from a year ago
period. For statement click here
* Minmetals Resources Ltd said zinc production at
Century exceeded revised 2011 guidance following strong
operating performance in the fourth quarter. A monthly
production record of 54,264 tonnes of zinc metal was achieved in
December. For statement click here
O
MARKET SUMMARY:
> Wall St edges up in quiet day; Disney down late
> Euro scales 8-week peak vs dlr on Greece deal optimism
> Bonds fall on supply, news Greek deal near
> Gold rises nearly 2 pct on Greece bailout optimism
> Oil up on volatile spread trade, weak dollar
(Reporting by Clement Tan and Donny Kwok; Editing by XXX)
