STOCKWATCH: Cheung Kong/Hutchison Whampoa lower in line with weak market

HONG KONG (AFX-ASIA) - Cheung Kong Holdings and Hutchison Whampoa were both lower on a weak broader market, with expectations about their 2000 results due today already priced in, they added.	    At 11:08 am, Cheung Kong was down 3.5 hkd or 4.05 pct at 82.75 on volume of 1.88 mln units, while Hutchison Whampoa was down 2.25 or 2.71 pct at 80.75 hkd on volume of 2.35 mln units.	    The Hang Seng Index was down 400.29 points at 12,754.15.	    "I think the two stocks were down this morning led by the weak market sentiment. It's nothing to do with the results," Eric Yuen, analyst of Dao Heng Securities, said.	    The across-the-board selling pressure followed the declines in the overseas markets, particularly in the U.S., he said.	    "Unless the results released from Cheung Kong and Hutchison this afternoon are worse than expected, investors will sell the stocks based on that reason," Yuen added.	    He said the market is over-sold as the benchmark index fell below 13,000 points, adding that Hong Kong's fundamentals are still "pretty good".	    Cheung Kong is estimated to post 20 to 22 bln in net profit for the year ended 2000, according to the market consensus, while Hutchison Whampoa is expected to post about 34.3 bln in net profit based on his house's estimate, Yuen added.	    Yuen said he anticipated property stocks will outperform the market in 2001 amid declining interest rates.	    He said he is recommending a "neutral" rating on Cheung Kong and "buy" rating on Hutchison Whampoa.	    Eddie Lau, analyst of ABN AMRO Asia, said losses in the two stocks were in line with the general weak market.	    He said he is recommending an "add" rating on Hutchison Whampoa despite still being cautious about its core operations, given the potential start-up losses of its units and 3G uncertainties.	    But he said the company's revenue is expected to increase from the GPRS services to be launched at the end of this year.	    He said he will revise the target price on Hutchison after the 2000 results. 

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