HK shares likely to rise; shipping stocks in focus

HONG KONG, May 16 (Reuters) - Hong Kong stocks are expected
to rise on Friday, tracking gains in global equities, with
shipping stocks likely to climb after sea freight rates for raw
materials hit a record high.

"The Hang Seng index has found its support at 25,000 points
and could test the 25,700 mark today," said Conita Hung a
director at Delta Asia.

China's stock markets have digested the impact from the
earthquake and Hong Kong stocks are now likely to be driven by
different themes, such as steel and cement amid expectations of
strong demand from reconstruction.

Shipping stocks were likely to strengthen after the Baltic
Exchange's chief sea freight index .BADI scaled a record high
on Thursday, Hung said.

A power struggle at the top management of Sun Hung Kai
Properties (0016.HK: Quote, Profile, Research) may weigh on the stock. [ID:nHKG322253]

"Sun Hung Kai looks less attractive now because any possible
management changes could add uncertainties on the company's
future planning and strategies," Hung said.

The benchmark Hang Seng Index .HSI closed down 0.08 percent
at 25,513.71 points on Thursday. But the China Enterprises Index
of Hong Kong-listed mainland companies .HSCE, or H shares,
finished 0.34 percent higher.
----------------------MARKET SNAPSHOT @ 0003 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1423.57 1.06% 14.910
USD/JPY <JPY=> 104.71 0.02% 0.020
10-YR US TSY YLD <US10YT=RR> 3.8238 -- 0.004
SPOT GOLD <XAU=> 881.5 0.12% 1.050
US CRUDE CLc1 124.33 0.17% 0.210
DOW JONES .DJI 12992.66 0.73% 94.28
ASIA ADRS .BKAS 168.61 2.31% 3.80
-------------------------------------------------------------

FACTORS TO WATCH:
* Nikkei rises 0.8 pct, tracking Wall Street [.T]
* Oil's fall, techs' gain drive U.S. stocks higher [.N]
* Asia shares may rise on tech, housing optimism [STXNEWS/AS]
* Oil slips on natural gas stockbuild [O/R]
* Yen rises broadly amid waning risk demand [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

STOCKS TO WATCH:

* Dongfang Electric Corp (1072.HK: Quote, Profile, Research) said late on Thursday
production facilities at its steam turbine operation in Sichuan
province were seriously damaged and there were casualties among
its staff. For details please see
here

* An institutional investor in China Construction Bank
(0939.HK: Quote, Profile, Research) was selling 408.5 million shares at HK$7.05 to HK$7.10
to raise up to $372 million, according to a document sent to
investors. [ID:nHKG278041]

* Melco International Development (0200.HK: Quote, Profile, Research) said its
Nasdaq-listed casino gaming and resort facilities developer and
owner, Melco PBL Entertainment (Macau), posted a sharp rise in
net revenue for first quarter of 2008 to US$482.9 million, from
US$179.8 million in the fourth quarter of 2007 due to substantial
operating improvement in Crown Macau. For detail please see
here

* Yue Yuen Industrial (Holdings) Ltd (0551.HK: Quote, Profile, Research) said a road
show to market shares of its spin-off unit, Pou Sheng
International (Holdings), to certain selected institutional
investors would commence on May 16. For details please see
here

* PetroChina (0857.HK: Quote, Profile, Research) said its shareholders had granted the
company a general mandate to issue additional domestic shares and
overseas listed foreign shares representing up to 20 percent of
its existing domestic shares and overseas listed foreign shares
in issue. For full statement please see
here
* Hunan Nonferrous Metals Corp (2626.HK: Quote, Profile, Research) said it planned to
pay about A$81.21 million in a takeover bid for Australian mining
firm Abra Mining (AII.AX: Quote, Profile, Research). Trading in Hunan shares will resume on
Friday. For details please see
here

* Hong Kong Exchanges and Clearing Ltd (0388.HK: Quote, Profile, Research) said David
Webb had resigned as an independent non-executive director
effective May 15 amid disagreement with management on certain
issues. For details please see
here

KEY HK ADR MOVERS (by % change)

Yanzhou Coal (YZC.N: Quote, Profile, Research)(1171.HK: Quote, Profile, Research) +4.04

PetroChina (PTR.N: Quote, Profile, Research)(0857.HK: Quote, Profile, Research) +3.61

CNOOC Ltd (CEO.N: Quote, Profile, Research)(0883.HK: Quote, Profile, Research) +3.14

Semiconductor Mfng (SMI.N: Quote, Profile, Research)0981.HK +2.18

Huaneng Power (HNP.N: Quote, Profile, Research)(0902.HK: Quote, Profile, Research) +1.58

China Netcom (CN.N: Quote, Profile, Research)(0906.HK: Quote, Profile, Research) -2.03
(US$1=HK$7.8)
(Reporting by Alison Leung; Editing by Anne Marie Roantree)