HK shares set to rise as bullish sentiment remains

HONG KONG, July 27 - Hong Kong shares are seen rising on Monday, tracking firmer overseas markets and after the market ended its best week in two months on a strong note amid ample liquidity and expectations of improved corporate earnings.

"There is no doubt the index will hover above the 20,000 level as sentiment remains bullish," said Patrick Yiu, a director from CASH Asset Management.

"Everybody knows there is a lot of hot money out there and they (investors) are likely to chase laggards in resources and banks on hopes of a better second half," he said, adding that an upside of about 20,300 was expected on Monday.

On Friday, the benchmark Hang Seng Index <.HSI> closed up 0.8 percent at 19,982.79, after breaching 20,000 points for the first time since the Lehman Brothers debacle in September 2008.

An analyst said the market was unlikely to go much further without a correction, and should pull back after the IPO excitement this week. Mainland building materials maker BBMG <2009.HK> will launch it IPO on Wednesday.

STOCKS TO WATCH:

* Aluminum Corp of China (Chalco) <2600.HK> <601600.SS> late on Sunday said it expected to see a loss in the first half of 2009 due to low aluminium demand and prices on the back of the financial crisis. [ID:nHKG100881]

* Tianjin Port Development <3382.HK> said late on Friday it expected to incur a loss for the first six months of 2009 on a decrease in container throughput and blended average unit price, in particular during the first quarter amid a decline in import and export trade in China. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090724/LTN20090724531.pdf

* Shandong Xinhua Pharmaceutical <0719.HK> predicted net profit would more than double from a year earlier as it expanded its high-profit-margin products and reduced procurement costs. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090724/LTN20090724430.pdf

* Shougang Concord International <0697.HK> late on Friday said it expected to record a consolidated net loss for the six months to June, compared with a year-earlier profit, on a drop in sales volume and prices of key steel plate products during the first half. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090724/LTN20090724288.pdf.

----------------------MARKET SNAPSHOT @ 2246 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 979.26 0.3% 2.970 USD/JPY <JPY=> 94.7 -0.04% -0.040 10-YR US TSY YLD <US10YT=RR> 3.6578 -- 0.000 SPOT GOLD <XAU=> 950.2 -0.02% -0.150 US CRUDE <CLc1> 67.76 -0.43% -0.290 DOW JONES <.DJI> 9093.24 0.26% 23.95 ASIA ADRS <.BKAS> 115.87 0.17% 0.20 -------------------------------------------------------------

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