STOCKWATCH: Legend higher ahead of major announcement

HONG KONG (AFX-ASIA) - Legend Holdings Ltd shares were higher against a weaker market ahead of an announcement on details of a major corporate development plan later this afternoon, dealers said. At 3:00 pm, Legend was up 0.1 hkd or 1.66 pct at 6.10, on volume of 17.61 mln shares. The Hang Seng Index was down 115.14 points at14,205.91. "We don't know yet whether the announcement is about the spin-off of its unit Digital China or some kind of consolidation of its Internet businesses," Patrick Wong, analyst of Asia Financial (Securities), said. The company issued a statement at noon that it will release the details of a major corporate development plan at 4:00 pm. Wong said the shares were driven higher by expectations of some good news about the company's spin-off plan. However, he said the actual impact of such news will depend on the nature of the business to be spun off and its asset valuation. Investors may possibly take profits once the market is able to confirm that the announcement will bear good news, he added. He said he will not revise his earnings forecast for the company before further details are known. Wong has recommended a "trading buy" for the company, with a target price at 6.30 hkd.

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