HK stocks fall in cautious trade, Hutchison shines

(For Shanghai market reports, click [.SS])
(Updates to Thursday lunch close)

HONG KONG, May 15 (Reuters) - Hong Kong stocks reversed
course to fall on Thursday as cautious investors shrugged off
regional gains and offloaded shares, but Hutchison Whampoa
(0013.HK: Quote, Profile, Research) jumped nearly 4 percent after a broker upgrade.

"The market was on a correction phase following gains in
recent months, with cautious investors mostly taking a
wait-and-see attitude as the market lacks momentum," said Louis
Wong, research director from Phillip Securities.

The blue chip Hang Seng Index .HSI has rebouned about 24
percent from its low in mid-March, but is down 9 percent so far
this year.

The benchmark Hang Seng Index had fallen 0.52 percent, or
132.15 points, to 25,401.33 by midday after it opened up 0.73
percent. The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, edged up 0.10 percent to
13,994.86.

Mainboard turnover rose to HK$45.3 billion (US$5.8 billion)
from HK$37.92 billion on Wednesday.

"Hutchison captured most of the attention in a market that
was lacking focus," Wong said.

Shares of Hutchison Whampoa (0013.HK: Quote, Profile, Research) rose 3.9 percent to
HK$82.05 after Citigroup upgraded the ports-to-telecom
conglomerate to buy from hold. Citigroup said Hutchison was
turning the corner as its 3G business was expected to break even
this year and it was likely to get an expected bumper
contribution from China property in 2008.

It raised Hutchison's target price to HK$90 from HK$82.

Selling in index heavyweights China Mobile (0941.HK: Quote, Profile, Research) and HSBC
(0005.HK: Quote, Profile, Research) offset gains in Hutchison and PetroChina (0857.HK: Quote, Profile, Research).

China Mobile fell 0.91 percent, while HSBC eased 0.37
percent.

PetroChina (0857.HK: Quote, Profile, Research) topped the list of most heavily traded
stocks, climbing 2.57 percent to HK$11.18. The oil refiner said
one third of quake-affected gas production had been restored.
[ID:nPEK312460].

CNPC, parent of PetroChina and a dominant energy supplier in
southwest China, said the impact on oil demand was marginal due
to the loss of power. [ID:nL14832223]

Tencent Holdings (0700.HK: Quote, Profile, Research) surged 7.8 percent to HK$69.80
after Citigroup raised its target price for the Chinese Internet
firm to HK$75 from HK$63. [ID:nHKG278769] [ID:nHKG293495]

Another bright spot was Shaw Brothers (0080.HK: Quote, Profile, Research), which surged
to an all-time high at HK$23.20 before steadying at HK$21.55, up
1.41 percent. The jump came after the Hong Kong media
conglomerate said its controlling shareholder was in talks to
sell its slice of the Hong Kong media conglomerate led by movie
mogul Run Run Shaw. [ID:nL14156688]

Semiconductor Manufacturing International Corp (0981.HK: Quote, Profile, Research) rose
3.57 percent after China's biggest contract chipmaker said there
was no structural or equipment damage to its facilities in
Chengdu and the earthquake did not have any impact on its other
facilities in the mainland.
(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)