Asian stocks volatile on HK tycoon's move
Asian stocks volatile on HK tycoon's move
SINGAPORE (AFP): Singapore stocks fell, but two of the
exchange's biggest stocks roared ahead on news that Hong Kong
tycoon Li Ka-shing was taking stakes in Hong Kong trading firm
Jardine Matheson Holdings Ltd. and its property subsidiary,
HongKong Land Holdings Ltd.
Both are listed in Singapore, and rose by 15.6 percent and
26.3 percent respectively on the news.
Analysts said that the Hong Kong businessman's move could be
part of a plan to increase his market exposure in Singapore and
give the much-needed local touch to British-linked Jardine.
The Jardine group said yesterday that Li had taken a 370
million U.S. dollar stake in Jardine Matheson, Hong Kong's oldest
trading firm, as well as HongKong Land amid speculations he was
planning to take control of the property arm.
Li made the purchase in Jardine Matheson and Hongkong Land
through his flagship Cheung Kong (Holdings) Ltd. and Hutchison
Whampoa.
The Straits Times Industrials index, fell 11.89 points to end
at 1951.71.
In Jakarta, share prices closed 0.7 percent lower yesterday as
cement and cigarette share prices continued to decline on concern
over Thailand's problems and first half results, dealers said.
"It (the index) is going to go weaker, maybe to below 700,"
Schroders Indonesia institutional sales manager Kian Guntur said.
The Jakarta Stock Exchange composite index closed down 4.829
points at 713. 880.
Dealers said that Thailand's economic problems also dampened
sentiment, adding that the only bright spots were Indonesia's
strong May trade figures and the firmer rupiah.
In Tokyo, Japanese share prices lost ground for the third
straight session yesterday under continued selling of blue chips
amid uncertainties over Japan's economic recovery.
The Nikkei Stock Average of 225 leading issues fell 153.62
points to finish at 19,514.45 while the Topix index of all issues
on the first section of the Tokyo Stock Exchange was down 10.13
points at 1,487.13.
In Bangkok, Thai shares dropped 2.3 percent in volatile
trading after the government unveiled a tough economic rescue
plan to be supported by the International Monetary Fund (IMF).
The Stock Exchange of Thailand (SET) broad-based index shed
15.35 points to 648.47 points, off a low of 634.58 points, while
the SET-50 select dropped 1.29 points to 49.14 points.
In Kuala Lumpur, Malaysian stocks plummeted 3.4 percent
yesterday on a selldown led by foreign funds reacting to June's
trade deficit and harboring lingering concerns over the health of
the ringgit.
The Kuala Lumpur Stock Exchange 100-share weighted composite
index tumbled 33.48 points to 945.08 points. The lesser second
board index fell 7.87 points, or 1.5 percent, to 524.30.
In Hong Kong, share prices rebounded 0.7 percent following
stronger-than-expected interim earnings by the largest stock on
the market, banking group HSBC Holdings Ltd., dealers said.
The key Hang Seng Index gained 111.93 points to finish at
16,371.52, failing to breach past the previous record closing
high of 16,379.22 set on Friday.
In Sydney, the industrials index improved 1.9 points to
4,351.4.
In Seoul, the composite index closed up 6.67 points at 740.86
on volume of 33.6 million shares worth 484.9 billion won ($541
million).