Stocks fall as Chalco, BYD drop
Updated: 2010-10-27 07:00
(HK Edition)
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Hong Kong stocks fell, as companies including Aluminum Corp of China Ltd and BYD Co led declines on reduced earnings, erasing earlier gains by oil producers on higher fuel prices.
The Hang Seng Index (HSI) fell 0.1 percent to 23,601.24 at the close, after rising as much as 0.4 percent. Thirteen stocks dropped for every nine that gained on the 45-member gauge. The Hang Seng China Enterprises Index rose 0.1 percent to 13,642.45.
"Investors are acting cautiously as they wait for more corporate results to come out," said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Co. "The market's taking a wait-and-see attitude."
Chalco tumbled 4.3 percent to HK$7.54. The company reported Monday a consecutive quarterly loss of 117.8 million yuan ($17.7 million) in the three months ended September 30 after costs rose and government limits on electricity use curbed production.
BYD sank 10 percent to HK$51.05 after reporting third-quarter profit dropped 99 percent to 11.34 million yuan from a year earlier amid faltering sales.
Ping An dropped 0.6 percent to HK$86.75 after Shenzhen New Horse said it sold 12.8 million shares, reducing its holdings in Ping An to 4.93 percent from 5.1 percent.
China Railway Construction Corp tumbled 14 percent to HK$9.63 after saying it will book a 4.15 billion yuan loss on its Mecca light-rail project, pending compensation talks with its client.
The HSI has surged 7.9 percent this year as positive corporate profits and economic data eased concern China's steps to curb property prices and Europe's debt crisis will slow global growth.
Oil producers rose after China increased retail gasoline and diesel prices by 3 percent Tuesday.
Futures on the HSI fell 0.4 percent to 23,617.
Bloomberg
(HK Edition 10/27/2010 page3)