STOCKWATCH: Kowloon Devt sharply higher on special interim div

HONG KONG (AFX-ASIA) - Kowloon Development was sharply higher in afternoon trade after the company announced the issue of a special interim dividend involving the distribution of four Kowloon Mobor Bus shares for 

every 37 Kowloon Development shares held.

At 3:17 am, Kowloon Development rose 1.40 hkd or 25.45 pct to 6.90 hkd, off an early high of 7.75 hkd, on trade of 1.31 mln shares, while Kowloon Motor Bus was was unchanged at 24.35 hkd.

The Hang Seng Index was down 28.76 points at 13,849.19 on turnover of 8.98 mln shares.

Kowloon Development is a major shareholder of Kowloon Motor Bus.

"Take a look at the Kowloon Motor Bus share price. The share bonus is very attractive. It is no surprise that Kowloon Development is posting such significant gains after the announcement," Kenny Tang, associate director 

with Tung Tai Securities, said.

However, Tang said the buying may be just short-lived.

"Fundamentals of Kowloon Development are just OK, and is expected not to be significant enough to support further significant gains," Tang said.

Kowloon Development is engaged in property, securities and film distribution and production.

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