19 September 2018

Cement maker buyback bid, rising prices cheer market

Cement plays starred Wednesday as Hong Kong stocks closed marginally higher, tracking gains in Shanghai.

The Hang Seng Index added 0.55 percent to finish at 23,812 points. The Hang Seng China Enterprises Index climbed 0.9 percent to 11,404 and the Shanghai Composite Index ended the day 0.82 percent higher at 2,201 points.

Taiwan’s largest Cement maker, TCC International (01136.HK), resumed trading Wednesday after its major shareholder proposed to privatize the company for HK$5.59 billion (US$721 million), sending the counter up 23.8 percent.

At HK$3.90 per share, the buyback price is a 27 percent premium to the stock’s last traded price of HK$3.06.

Other cement stocks rallied on news mainland cement prices have climbed for a seventh straight week. China Resources Cement (01313.HK) surged 4.3 percent to a 52-week high. West China Cement (02233.HK) and China Shanshui Cement (00691.HK) both saw notable gains.

Gambling plays Sands China (01928.HK) and Galaxy Entertainment (00027.HK) both picked up more than over 1 percent for the day while Hengan International (01044.HK) finished 2 percent higher, the best performer among blue chips.

China Mobile (00941.HK) rose 1.6 percent while rivals China Unicom (00762.HK) and China Telecom (00728.HK) gave up 1.6 percent and 0.5 percent, respectively, after reports Chinese authorities will award TD-LTE 4G licenses as soon as Thursday. 

Meanwhile, Guangzhou Automobile (02238.HK) and BYD Co (01211.HK) soared 4.8 percent and 2.5 percent, respectively, after the government announced a first batch of 28 cities and regions that will receive subsidies for promoting new energy cars.

– Contact the writer at [email protected]



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