Hong Kong shares outlook: Lower on Wall St; Hutchison/Cheung Kong in focus

HONG KONG (AFX-ASIA) - Share prices look are expected to open lower in reaction to continued hefty falls on Wall Street overnight on disappointment at the lower-than-expected rate cut by the U.S. Federal Reserve, dealers said.	    The benchmark index will likely breach 13,000 points but late-bargain hunting may help lift it back above that level, as happened yesterday when Tokyo rose sharply, they said.	    Hutchison Whampoa and Cheung Kong could be under pressure amid some concern about their earnings outlook with 2000 results due from both today.	    Yesterday, the Hang Seng index closed down 69.42 points or 0.52 pct at 13,154.44, off a low of 12,866.40 and a high of 13,243.65, on turnover of 8.43 bln hkd.	    The Hang Seng March contract last traded at 13,050 points.	    The Hang Seng London Reference Index was down 78.63 points at 13,075.81.	    The overnight rate opened at 4.9375 pct, compared with 4.50 pct at yesterday's close, while 3-month HIBOR was unchanged at 4.875 pct. 	    The base rate remains at 6.50 pct.	    Ben Kwong, associate director with KGI Securities, said he expects the Hang Seng Index to trade 12,800-13,000 points today.	    "The initial support for the index is at around 12,800 points. If it breaches that level, its next support will be at 12,500 points," he said.	    Kwong said Hutchison and Cheung Kong will test their support levels of 80.00 hkd and 82.00-83.00 hkd today on expectations that the companies will report disappointing results for 2000.	    Hutchison Whampoa is expected to report a 2000 net profit of 33.3-37.67 bln hkd, compared with 117.3 bln hkd the previous year when it received a windfall of 118 bln from the disposal of Orange Plc.	    Hutchison could make exceptional gains of more than 20 bln hkd from investment disposals but is also expected to add to first half provisions of some 30 bln hkd for its holdings in Vodafone PLC.	    Cheung Kong (Holdings) Ltd is expected to report a 2000 net profit of 17.0-25.22 bln hkd, compared with 59.37 mln hkd a year earlier, as the contribution from Hutchison Whampoa Ltd falls back from exceptional levels.	    Patrick Yiu, associate director with Kingsway Securities, said he expects the benchmark index to open at around 12,850-12,900 points.	    He said property stocks will continue to come under pressure after yesterday'a falls, but the downside is seen limited in the sector, with bargain hunting in selected stocks seen offsetting sharp declines recently.	    Red chips and H-shares are expected to continue to outperform the broader market on a better China story, dealers said. 

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