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Thursday 4 September 2008
Lee Shau-kee says time is right to dive back into ‘oversold’ shares
Lee Shau-kee, who last year was touted as Asia’s Warren Buffett but who has had a mixed record of predicting the market, says Hong Kong stocks have been oversold and now is the time to buy.
Lee Shau-kee says time is right to dive back into ‘oversold’ shares
Sandy Li Sep 03, 2008
Lee Shau-kee, who last year was touted as Asia’s Warren Buffett but who has had a mixed record of predicting the market, says Hong Kong stocks have been oversold and now is the time to buy.
Mr Lee said it was an attractive time to enter the market now that the Hang Seng Index had retreated to about 21,000 points.
“Hong Kong stocks have dropped too far because of a host of negative news,” he said yesterday.
He said the market had been clouded by numerous factors: growing concern over the global economy that had hurt corporate earnings; the deepening subprime mortgage crisis in the United States; and central government austerity measures to tame inflation.
“After a sharp correction, the downside risk for blue chips should be limited,” Mr Lee said after Miramar Hotel and Investment’s annual general meeting.
Following his upbeat remarks, the Hang Seng Index yesterday closed up 0.65 per cent at 21,042.46 points as investors hunting for bargains bought heavyweight stocks during the last 30 minutes of trading.
“I hope the Hang Seng Index will rebound to above 23,000 points by the end of this year,” said Mr Lee, who is the chairman of Miramar Hotel and Henderson Land Development.
His latest forecast is lower than his prediction in July that the index would rise to 25,000 points by the end of this year.
In May, he said the index would rebound to 30,000 by August, the month of the Beijing Olympics.
Mr Lee said he saw no reason for a collapse in H shares considering the promising economic outlook on the mainland, which was still registering rapid growth.
He did not reveal the current value of his personal trust investments but said he had not sold any shares. “But I will replace two or three stocks in my portfolio if I find some that have greater upside potential,” he said.
Two months ago, Mr Lee indicated his Shau Kee Financial Enterprises had suffered a paper loss of HK$50 billion.
His personal trust was founded in 2004 with HK$50 billion in seed capital, which surged to HK$200 billion as the Hang Seng Index rose to a record 31,638.22 points in October last year.
Mr Lee said mainland banks, insurance firms and energy stocks remained his top picks.
Asked about the prospects for Country Garden Holdings, Mr Lee said he had suffered a great loss from the stock, which has fallen 63.53 per cent this year. Country Garden dropped to a 52-week low of HK$3.25 at one point yesterday before closing down 3.24 per cent at HK$3.29.
Mr Lee also said an agreement to grant a loan to Country Garden chairman Yeung Kwok-keung was still valid if he pursued it. It has been reported that Mr Yeung plans to acquire 75 per cent of Shaw Brothers (Hong Kong) from Sir Run Run Shaw, which could give Mr Lee control of the city’s dominant television channel, Television Broadcasts.
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Lee Shau-kee says time is right to dive back into ‘oversold’ shares
Sandy Li
Sep 03, 2008
Lee Shau-kee, who last year was touted as Asia’s Warren Buffett but who has had a mixed record of predicting the market, says Hong Kong stocks have been oversold and now is the time to buy.
Mr Lee said it was an attractive time to enter the market now that the Hang Seng Index had retreated to about 21,000 points.
“Hong Kong stocks have dropped too far because of a host of negative news,” he said yesterday.
He said the market had been clouded by numerous factors: growing concern over the global economy that had hurt corporate earnings; the deepening subprime mortgage crisis in the United States; and central government austerity measures to tame inflation.
“After a sharp correction, the downside risk for blue chips should be limited,” Mr Lee said after Miramar Hotel and Investment’s annual general meeting.
Following his upbeat remarks, the Hang Seng Index yesterday closed up 0.65 per cent at 21,042.46 points as investors hunting for bargains bought heavyweight stocks during the last 30 minutes of trading.
“I hope the Hang Seng Index will rebound to above 23,000 points by the end of this year,” said Mr Lee, who is the chairman of Miramar Hotel and Henderson Land Development.
His latest forecast is lower than his prediction in July that the index would rise to 25,000 points by the end of this year.
In May, he said the index would rebound to 30,000 by August, the month of the Beijing Olympics.
Mr Lee said he saw no reason for a collapse in H shares considering the promising economic outlook on the mainland, which was still registering rapid growth.
He did not reveal the current value of his personal trust investments but said he had not sold any shares. “But I will replace two or three stocks in my portfolio if I find some that have greater upside potential,” he said.
Two months ago, Mr Lee indicated his Shau Kee Financial Enterprises had suffered a paper loss of HK$50 billion.
His personal trust was founded in 2004 with HK$50 billion in seed capital, which surged to HK$200 billion as the Hang Seng Index rose to a record 31,638.22 points in October last year.
Mr Lee said mainland banks, insurance firms and energy stocks remained his top picks.
Asked about the prospects for Country Garden Holdings, Mr Lee said he had suffered a great loss from the stock, which has fallen 63.53 per cent this year. Country Garden dropped to a 52-week low of HK$3.25 at one point yesterday before closing down 3.24 per cent at HK$3.29.
Mr Lee also said an agreement to grant a loan to Country Garden chairman Yeung Kwok-keung was still valid if he pursued it. It has been reported that Mr Yeung plans to acquire 75 per cent of Shaw Brothers (Hong Kong) from Sir Run Run Shaw, which could give Mr Lee control of the city’s dominant television channel, Television Broadcasts.
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