STOCKWATCH: Li & Fung higher in line with market ahead of results

HONG KONG (AFX-ASIA) - Li & Fung Ltd shares were higher in line with the broader market, coupled with positive expectations about the company's 2000 results, due this afternoon, dealers said.	    At 11:00 am, Li & Fung was up 0.4 or 3.3 pct at 12.50 hkd on volume of 1.32 mln units.	    The Hang Seng Index was up 165.59 points or 1.32 pct at 12,748.95.	    "I think the overall market went up today, so the stock also went up, slightly outperforming it," ING Baring analyst Howard Lee said.	    He said he expects the company's 2000 results will meet market consensus, and forecast net profit of about 847.8 mln hkd, a 54 pct growth on the previous year. He also predicted earnings per share at 0.319 hkd and sales at 25.2 bln hkd.	    Lee said profit growth was primarily driven by the acquisitions of Swire & Maclaine and Camberley Enterprises and the contribution from the Disney contract.	    He recommends a "hold" rating on the company given the uncertainties stemming from the U.S. economy.	    "The U.S. market accounted for about 85 pct of the company's total sales," Lee added.	    He said the impact on the company of the slowing U.S. economy remains to be seen and that the results may give a clearer indication.    

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