Investors hungry for Hutchison results

SHARES in Hutchison Whampoa gained ground today in line with a broad-based regional recovery as fears inspired by the Madrid bombings fell away. But investors in the

Although the shares gained 50 cents or 0.9% to HK$58.75, they remain a considerable distance from recent highs this year of almost HK$70. Will they be able to scale fresh peaks in the weeks ahead?

For analysts the main point of the looming presentation will be a chance to judge the strength of demand for Li's boldest commercial gamble for decades, the rollout of his third-generation (3G) mobile phone venture, including Britain's 3.

Lacklustre initial sales last year meant that Hutchison fell miserably short of its one million UK handsets target. Italy, another major 3G market, also missed its target of one million handset sales by a wide margin.

The consistent line from Li and his lieutenants, including managing director Canning Fok, is that the glitch has been in supplies.

The principal manufacturers are NEC and Motorola, and Hutchison maintains that it could not get enough of the units that combine telephony with high-speed internet access. Analysts say with the passage of time, Hutchison is now approaching a moment of truth. The company, which also has extensive port operations, has had long enough to sort out its supply chain, and must start to demonstrate that punters are really as keen on the devices as it maintains.

The results presentation may also bring news of cash-generating asset shuffles, which are also linked to the 3G drive. Li needs to raise additional funds to offset projected 3G losses through to the hoped-for breakeven in 2006.

The bounceback from last week's knee-jerk sell-down after the Spanish atrocities carried the Hang Seng index over the 13,000-point threshold. The 33-member barometer of stocks rose 120.35 points to 13,052.58, a gain of 0.9%.

Leading the charge was global lender HSBC, which advanced HK$1 or 0.8% to HK$120, and affiliate Hang Seng Bank, which put on 30 cents or 0.3% to HK$100.50.

Other finance plays also blossomed with Bank of China (Hong Kong) gaining 10 cents or 0.7% to HK$14.90, and Bank of East Asia trading at HK$22.70, up 25 cents or 1.1%.

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Cathay Pacific Airways, which had taken a hit on the rise in terror fears, recovered by 20 cents or 1.3% to HK$15.95.

There was a handy lift for Korea's Samsung Electronics as the top chipmaker said demand for its main product was so strong a shortfall in supplies was expected towards the end of the year.

'We expect a shortage of DRAM chips in the second half as personal computer demand is traditionally higher prior to students returning to school in the autumn, and before the Christmas holiday season,î a senior company official told reporters.

Shares in Asia's largest hi-tech company by market capitalisation firmed 5,000 won or 1% to 529,000. The Seoul Composite index rose 5.12 points or 0.6% to 853.92.

Japanese equities also showed renewed strength, especially aviation stocks. All Nippon Airways (ANA) rose nine yen or 2.6% to 354, and Japan Airlines System (JAS) gained 11 yen or 3.3% at 346. The Nikkei 225 rose 155.15 points or 1.39% to close at 11,317.90.