STOCKWATCH: Cathay Pacific steady after results

HONG KONG (AFX-ASIA) - Cathay Pacific Airways Ltd shares were steady after the company reported its 2000 results, with the strong earnings performance having been discounted as it was within market expectations, dealers said. At 2:57 pm, Cathay was steady at 12.10 hkd on volume of 7.33 mln shares. The Hang Seng Index was down 86.60 points at14,234.45. Peter Hilton, an analyst with Credit Suisse First Boston, said the company's results were in line with expectations. "The results were within market expectations, our forecast was 5.00 bln hkd and we have made it," Hilton said. Cathay Pacific reported 2000 net profit of 5.00 bln hkd, against 2.18 bln in 1999. Its turnover was at 34.52 bln hkd, against28.70bln. Despite the 2000 results, the company's earnings outlook remains uncertain amid an economic slowdown in the U.S., he said. "We are reviewing the business outlook of the company, but we expect the U.S. economic slowdown will have an impact," he said. Louis Tse, executive director with Standard Capital Brokerage, said Cathay Pacific may test 12.50 in the near term, after its high of 12.70 in January. "We see some buying in the stock in the afternoon after the company reported encouraging results. However, profit-taking may emerge in later sessions on concerns over the company's business outlook for the coming year," Tse said. He said areas of concern include oil prices and airline competition.

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