August air cargo throughput down

Air cargo throughput via Hong Kong in August fell 9.3 percent from a year earlier, data from Hong Kong Air Cargo Terminals Ltd (Hactl) released on Friday showed.

Cargo exports and imports from the city in August decreased 13.3 percent and 8.9 percent, respectively, from a year earlier.

Airport to submit expansion plan

Airport Authority Hong Kong aims to submit an expansion proposal to the government by the end of the year, according to Stanley Hui, chief executive officer of the city-owned airport operator.

Public consulation on expansion, including the possible construction of a third runway, has drawn 30,000 responses, he told reporters in the city on Friday.

Esprit falls after profit warning

Shares of Esprit Holdings fell more than 10 percent to the lowest in about three weeks after the Europe-focused clothing retailer warned of a sharp drop in yearly profit due to one-off restructuring costs.

The stock fell 10.1 percent to close at HK$19.64 on Friday. Esprit said late on Thursday that it was set to post a sharp drop in 2010-11 profit as a result of one-off costs related to restructuring. Esprit, whose results are due on September 15, said its board had on Thursday approved a strategic plan to restructure store operations.

Sany Heavy, Citic ready share offers

Citic Securities and construction machinery company Sany Heavy Industry are slated to start marketing a combined $5.5 billion in share offerings next week, sources said on Friday, in what could be one of the busiest months for stock deals in Hong Kong so far this year.

Sany Heavy Industry Co Ltd received approval from the Hong Kong Stock Exchange's listing committee on Thursday and should start meetings with investors on Monday for an up to $3.5 billion share offering, a source with direct knowledge of the plan told Reuters.

Stocks fall ahead of US jobs data

Stocks fell for the first time in five days on Friday, paring this week's gains, ahead of a report that may show US employment growth has slowed, adding to concerns the world's largest economy is deteriorating.

The Hang Seng Index (HSI) slipped 1.81 percent to 20212.91 as of the close of trading in Hong Kong. The Hang Seng China Enterprises Index slid 2.36 percent to 10664.45. Futures on the HSI slid 1.7 percent to 20056. The HSI Volatility Index climbed 2.2 percent to 30.86. Futures on the Standard & Poor's 500 Index fell 0.6 percent on Friday.

Li & Fung slumped 6.7 percent to HK$13.84. The company's investment rating was also lowered to "outperform" from "buy" at CLSA Asia-Pacific Markets. Cathay Pacific lost 1.8 percent to HK$15.74. Foxconn International Holdings Ltd lost 0.8 percent to HK$3.92.

Stocks fell before a US Labor Department report on Friday that may show US non-farm payrolls climbed 68,000 after a 117,000 increase in July, according to the median forecast of economists surveyed by Bloomberg News. The unemployment rate probably held at 9.1 percent, marking 26 of the last 28 months in which it has been at or above 9 percent.

Commodity producers declined after the price of crude oil retreated as much as 0.6 percent, down from its highest level in almost a month, and the London Metal Exchange measure of six metals slid 1.3 percent on Thursday.

PetroChina Co declined 3.5 percent to HK$9.67. Cnooc Ltd fell 3.3 percent to HK$15.44, the biggest drag on the HSI. Jiangxi Copper Co dropped 3.9 percent to HK$21.95.

Bloomberg - Reuters

(HK Edition 09/03/2011 page2)