STOCKWATCH: First Pacific sharply higher on asset disposal plan

HONG KONG (AFX-ASIA) - First Pacific Co Ltd shares were sharply higher after the company announced plans to dispose of a 19.8 pct stake in Savills Plc, a UK property consulting company, dealers said. At 12:01 pm, First Pacific was up 0.10 hkd or 4.44 pct at 2.35 on trade of 1.63 mln shares. The Hang Seng Index was up 2.40 points at 14,323.45 on turnover of 3.59 bln hkd. Kenny Tang, associate director of Tung Tai Securities, said the buying was sparked by the asset disposal plan. First Pacific said it plans to sell the Savills stake, but the asset disposal is still at a preliminary stage. "After recent falls in its share price, after the lower than expected 2000 results, bargain hunting emerged (helping it) to recover some of of the previous losses," Tang said. The lower than expected net profit for 2000 mainly stemmed from a 140 mln usd provision to cover foreign exchange losses. Tang said the stock has been very volatile on concerns about profitability of units Indofood in Indonesia and PLDT in the Philippines. "While the company is expected to incur less foreign exchange losses from its investments in southeast Asia this year, political uncertainty (in the region) still clouds the prospects," Tang said. Tang said he recommends a "sell" on the stock.

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