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).