Hindalco Industries net profit declined 16% to 542 crore rupees on 1.44% fall in total income to 4,646 crore rupees during the third quarter of December 2007 over the third quarter of December 2006.

National Thermal Power Corporation was down 2.1% to 197.55 rupee. The company announced on Wednesday that it will invest about 4375 crore rupees of $1.1 billion in setting up a power plant in north-east India.

Oil & Natural Gas Corporation advanced 2.53% to 993 rupees on reports that the Director-General of Hydrocarbons has conceded ONGC's may not be able to meet its drilling schedule on the difficulty of securing rigs.


[R]6:00PM New York, 6:00AM Hong Kong- Hong Kong Monetary Authority cuts rate to 4.5%. Yue Yuen plans to list its retail subsidiary in Hong Kong.[/R]

In Hong Kong trading Hang Seng Index slipped 0.8% or 195.95 to 23,455.74, while the Hang Seng China Enterprises Index dropped 2.1% to 12,485.07. Market index losses are running as high as reached during the Asian market crisis in 1997.

Of the 43 Hang Seng Index shares, 26 gained and 16 declined.

Daily turnover on main-board soared to HK$110.7 billion compared to 105.1 billion yesterday.

The Hong Kong Monetary Authority today lowered its key rate to 4.5% after the U.S. Federal Reserve slashed in benchmark rate from 3.5% to 3% yesterday.

HSBC and Standard Chartered also cut their lending rate by a quarter percentage point and cut interest rates paid on deposits for sums below HK$150,000 by 0.25%.

China People’s Daily online edition reported today that Hong Kong secretary for Commerce and Economic Development Frederick Ma yesterday spurned calls to introduce “group loss relief” and “loss carry back” provisions may lead to widespread tax evasion.

Under the “group loss relief” the losses of one or more companies can offset the profits of others in the same group, while under the “loss carry back” system profits can be offset by profits made in the previous year so that the company can get a tax refund on tax paid.

Shipping lines rallied after the Baltic Dry Index, which is used as a measure of freight charges, rose 5.1% yesterday. China Cosco Holdings Limited advanced 12% to HK$1.86 and Pacific Basin Shipping Limited soared 13% to HK$1.26.

Lenovo Group Limited climbed 13% to HK$5.37 after reporting third quarter profit rose to $172 million. The company also announced plans to sell its mobile phone business for $100 million and concentrate on PC’s.

However financial stocks declined after U.S. credit rating agency Standard & Poor said yesterday it might cut ratings on $534 billion mortgages and collateralized debt obligations. Brokerage BNP Paribas also cut its rating on China’s financial services sector from “neutral” to “underweight”.

China Construction Bank shed 32% to HK$5.39 after BNP Paribas also cut rating on the stock to “buy” from “hold”.

Coal companies also fell as well. China Coal slipped 9.2% to HK$1.80 and Yanzhou Coal Mining tumbled 5.5% to HK$13.06.

Retailer Esprit reported today that first half net profit jumped 37.3% from HK$2.4billion a year ago to HK$3.3billion. Turnover climbed 27% to HK$18.5billion from HK$14.6 a year earlier.

About half of the company’s turnover was in Germany after a tax reduction. Furthermore, the company plans to spend HK$500 million to open 60 new stores globally.

The Standard news online reported today that Yue Yuen, which makes shoes for Nike and Timberland, said it will spin off its retail business arm Pou Sheng International for $800 million and list the company in Hong Kong after it receives shareholder approval.