STOCKWATCH: Great Eagle outperforms; downside limited after recent losses

HONG KONG (AFX-ASIA) - Great Eagle Holdings Ltd shares were lower in afternoon trade but were outperforming the market, with the downside limited after its recent sell-off, dealers said. The company's 2000 results had little immediate on the stock price but analysts said they are waiting for further details before coming to a full opinion. At 3:23 pm, Great Eagle was down 0.15 hkd or 1.14 pct to 12.90 hkd on volume of 367,000 shares, while the Hang Seng property sub-index was down 655.39 points at 17,772.57. The Hang Seng Index was down 346.18 points at 13,439.54 on turnover of 7.10 bln hkd. Kitty Chan, associate director with Lippo Securities, said the results were in line with expectations, producing little surprise. Great Eagle reported a 2000 net profit of 622.95 mln hkd, compared with 645.32 mln a year earlier. "The results have had little impact on the stock. Amid weak sentiment toward the property sector, the stock has been under heavy pressure since the beginning of this year," Chan said. In January, the stock traded at 16.65 hkd,the high so far this year. "Now, the stock has fallen below 13.00 hkd. After yesterday's 12 pct drop, the selling pressure is limited today. It is quite technical in nature," Chan said, noting the small trading volumes involved. A property analyst with a local brokerage said the net profit was lower than his forecast of 646 mln hkd but he needs more details to assess how this came about. The analyst said about 60 pct of Great Eagle's profit comes from rentals and the remaining 40 pct from hotel operations.

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