Saturday 26 September 2009

Hong Kong shares fall, Lilang stumbles on debut

Hong Kong share prices were 0.96 per cent lower barely an hour into the trading on Friday, with the benchmark Hang Seng Index down at 20,847.86. The China Enterprises Index of top locally listed mainland stocks lost 0.94 per cent to 11,933.84.

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Guanyu said...

Hong Kong shares fall, Lilang stumbles on debut

Reuters in Hong Kong
26 September 2009

Hong Kong share prices were 0.96 per cent lower barely an hour into the trading on Friday, with the benchmark Hang Seng Index down at 20,847.86. The China Enterprises Index of top locally listed mainland stocks lost 0.94 per cent to 11,933.84.

Shares of menswear retailer China Lilang fell to as low as HK$3.63 on their trading debut, 6.9 per cent below their issue price of HK$3.90. They steadied at HK$3.80 later.

Its debut came a day after Metallurgical Corp of China marked Hong Kong’s worst debut this year. Metallurgical shares, which fell as much as 13 per cent on Thursday, rebounded 3.2 per cent to HK$5.79.

Brokers said the disappointing performance of Metallurgical soured confidence for both IPOs and the stock market, and might dull upcoming IPOs.

SJM Holdings fell 5.2 per cent to as low as HK$4.23, its lowest since September 15, after the casino operator announced a plan to issue HK$2 billion in Hong Kong dollar-denominated zero-coupon bonds due in 2015, convertible into SJM shares at a 20 per cent premium over the previous close at HK$5.35 each. The proceeds will fund capital expenditure for Macau developments and for corporate purposes.

Real Gold Mining fell 17.5 per cent to as low as HK$9.32 before steadying at HK$9.66, still down 14.5 per cent from the previous close. The gold producer said it planned to sell 105 million new shares to its controlling shareholder at a 15 per cent discount at HK$9.60 each, raising capital to fund the development of its mining and exploration activities, and for the acquisition of gold mining and exploration projects.

Electrical appliance store operator Gome Electrical fell 1.5 per cent to HK$2.03 after it said it had repurchased 1.33 billion yuan (HK$1.51 billion) worth of convertible bonds through an over-the-counter purchase, reducing the amount of convertible bonds outstanding to 3.27 billion yuan.