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HK stocks end higher on high-techs

HONG KONG: Hong Kong stocks ended on Thursday at their highest level in two weeks, led by Hutchison Whampoa Ltd's news of a HK$1.6 billion windfall and by a Nasdaq-inspired technology rally.

In another roller-coaster day, the benchmark Hang Seng Index ended Thursday up 0.93 percent or 163.54 at 17,710.58, after dropping as much as 0.9 percent at one juncture. Cash-happy Hutchison accounted for almost 70 percent of the Hang Seng's gain. It said it had sold 925 million Vodafone AirTouch Plc shares for 3.2 billion pounds (HK$39 billion), in what dealers said was the world's biggest single placement of shares.

"They are using the cash to build up their third generation network with the view that wirefree is the future of telecommunicatons," said Mark Simpson, conglomerate analyst at Nomura International (HK) Ltd.

"At the end of next year, I'd expect two thirds of their assets to be in the 'new economy' of telecom and Internet and the beauty is they already have a recurrent income stream."

Hutchison leaped 4.7 percent or HK$6.50 to HK$145.00, while its parent Cheung Kong (Holdings) Ltd vaulted 3.6 percent or HK$4.00 to HK$116.00. After the market closed, Hutchison posted a 1999 net profit of HK$117.35 billion, compared to HK$8.71 billion in 1998, on a HK$118 billion gain from the sale of its stake in Orange Plc.

Cheung Kong reported a 1999 net profit of HK$59.4 billion after the market closed, due partly to the huge exceptional gain from Hutchison.

While China Telecom (Hong Kong) Ltd ended Thursday slightly lower, Cable & Wireless HKT (C&W HKT) was buoyed up by the tech and telecom rally on the Nasdaq.

Hong Kong's largest telecoms carrier rose 1.21 percent or HK$0.25 to HK$20.95, after slumping in recent days as the company merging with it, Internet firm Pacific Century CyberWorks (PCCW) 1186.HK, fell under HK$20.00, a major technical support level.

PCCW 1186.HK ended a two-day slump, jumping 0.53 percent or HK$0.10 to HK$18.80.

"PCCW has been a bit oversold over the last few days and the Nasdaq being very strong is helping sentiment," said Alex Wong, research manager at OSK Asia Securities. The high-tech GEM index also took a cue from the Nasdaq's rise on Wednesday, surging 3.31 percent to 971.22, but still below its 1,000 base started on Monday.

Tom.com Ltd, an Internet vehicle for Hong Kong tycoon Li Ka-shing, soared 7.6 percent or HK$0.80 to HK$11.30.

Henderson Land fell modestly while Sino Land Co Ltd was unchanged ahead of their results after the market close.

More banks and developers are scheduled to report on Friday and the Asian recovery should bode well for their results, analysts said.

But 18,000 is a major resistance level for the Hang Seng, said Jason Tang, a salesman at South China Securities.

On Friday the Hong Kong Association of Banks meets after the market closes to review interest rates.

Turnover at HK$12.2 billion was much lower than February's daily average of HK$22.0 billion.-Reuters