STOCKWATCH: CLP higher in line with market; no impact from proposed purchase

HONG KONG (AFX-ASIA) - CLP Holdings Ltd shares were slightly higher on follow-through buying, tracking the performance of the general market, dealers said.	    The company's proposed acquisition of a power station in Shaanxi province, however, had no impact on its shares in the morning, as investors were still looking for further details, they said.	    At 11:25 am, CLP was up 0.20 hkd or 0.49 pct at 41.00 hkd on volume of 1.05 mln shares.	    The Hang Seng Index was up 72.12 points at 12,750.02.	    Kenny Tang, research manager with Tung Tai Securities, said: "CLP was steady to slightly higher in the morning with investors remaining cautious after significant rises in recent trading sessions."	    He said further upside in the stock will be limited after its recent large rises.	    "Investors tend to view utilities as safe havens against the general volatility elsewhere in the region ... CLP is seen remaining at its current prices at the moment," he said.	    The current P/E ratio of CLP was about 11 times, which is fair when compared with its utility peers of around 10 times on average, Tang said.	    He said he will recommend a "hold" on the stock, with the counter's near-term resistance capped at around 42.00 hkd.	    Concerning the acquisition in Shaanxi, Tang said investors were still looking for further details, while the power station is still seeking approval from the Chinese government.	    CLP Holdings said wholly-owned subsidiary CLP Power China Ltd has acquired a 49 pct stake in the Shenmu II Power Station in Shaanxi for 18.35 mln usd from Enserch International Ltd, a subsidiary of the U.S. utility, TXU Development.	    CLP is awaiting approval from the Ministry of Foreign Trade and Economic Cooperation for the transaction.	    "It is still waiting for approval from the Chinese government and the power station will not generate any revenue to the company in the short term," he said. 

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