STOCKWATCH: Henderson Land higher, outperform after rate cut

HONG KONG (AFX-ASIA) - Henderson Land Development was higher, outperforming other property stocks after Hong Kong banks cut their interest rates, dealers said.

	    They said Henderson is outperforming not because it is expected to gain more from the rate cuts, but rather because the stock is less liquid compared to other major property counters.

	    At 11:57 am, Henderson Land was up 1.60 hkd at 38.80 on volume of 3.131 mln shares. Cheung Kong was was flat at 93,00 on 1.89 mln shares.

	    The property index was up 168.66 points at 18,115.61 while the Hang Seng index was up 175.57 at 13,896.84.

	    "The liquidity of Henderson Land is lower compared to the other blue chip property stocks like Sun Hung Kai Properties and Cheung Kong," an analyst with a local brokerage said.

	    "I am therefore not surprised that Henderson Land is outperforming the others."

	    The analyst's current recommendation on Henderson Land is neutral as its share price has risen to "almost its NAV level."

	    "Unless the stock is trading at a discount to the NAV, I will not be calling a buy on Henderson Land," he said.

	    He said the only blue chip property stock that he is calling a buy on is Cheung Kong. Sun Hung Kai is also on a neutral recommendation as it is overpriced, he said.

	    Another analyst with a local brokeage said he has not heard of any new information on Henderson.

	    "There is no fundamental reason why the share price is rising. Nothing has changed except for the interest rate cut," he said.

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