Hong Kong shares outlook: Lower on Wall Street falls/PCCW in focus

HONG KONG (AFX-ASIA) - Share prices are expected to open lower, tracking Wall Street's performance overnight following the latest profit warnings from Nortel Network and Palm, dealers said.	    Across the board selling will be evident, with Pacific Century CyberWorks expected to be in focus following the very large 2000 net loss reported yesterday, they said.	    The Hang Seng index yesterday closed up 143.51 points at 12,851.41, off an early low of 12,779.34 and a high of 13,015.73, on turnover of 6.88 bln hkd. 	    The Hang Seng March contract last traded at 12,859 points.	    The Hang Seng London Reference Index was down 63.08 points at 12,788.33.	    The overnight rate opened at 5.00 pct, up from 4.75 pct at yesterday's  close, while the 3-month HIBOR was at 4.875 pct, against 4.8125 pct. 	    The base rate remains at 6.50 pct.	    Patrick Yiu, associate director with Kingsway Securities, said the Hang Seng Index is likely to trade between 12,550-12,600 points, following the declines on Wall Street overnight.	    The key support level for the index is now seen as around 12,400-12,500 points, he said.	    "The Hang Seng Index will experience volatility today, with an initial decline seen following the falls on the DJIA and NASDAQ overnight," he said.	    Among individual stocks, PCCW is likely to test its key support level of 3.00 hkd, following its weaker-than-expected 2000 results, dealers said.	    "It might breach below 3.00 hkd, following its overnight ADRs close of 3.10 hkd," Yiu said.	    PCCW reported a larger-than-expected net loss of 886 mln usd or 6.907 bln hkd for 2000, mainly on the back of a substantial charge for unrealized losses on portfolio investments.	    The company also announced that it had decided to write off 22 bln usd or  172 bln hkd of goodwill related to last year's acquisition of Cable & Wireless HKT, leaving it with negative shareholder equity.	    Dealers said there is a possibility of capital outflows from the territory as some investors trim their portfolios.  

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