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Hong Kong's CK Hutchison shares drop due to dividend disappointment and volatile outlook

The shares of CK Hutchison dropped on Friday, after the conglomerate that combines retail and telecoms reported a weaker earnings performance and lower dividends. It also warned about a volatile operating environment.

Last year, the group's underlying profit, which has to deal with Beijing's displeasure over the sale its ports business, fell 11% from HK$20,8 billion ($2.7 billion), falling short of expectations.

The final dividend for 2023 was reduced to HK$1.514 from HK$1.775 per share.

Early Hong Kong trading saw shares of the company drop by 1.9%.

The company agreed to sell assets in the vicinity of the strategically significant Panama Canal to a BlackRock led consortium. The deal, which is expected to net the company more than $19 billion cash, has been criticized by Beijing.

CK Hutchison did not mention the ports deal in their earnings report, but they said that "trade and geopolitical tensions" have increased significantly.

In a statement, it stated that the operating environment of the Group's business is likely to be volatile and unpredictable.

The statement added that the government will limit capital expenditures and new investments and place a strong focus on cash flow management.

(source: Reuters)