By Hanny Wan Dec. 9 (Bloomberg) -- Hong Kong stocks fell, led by utilities after UBS AG cut its price forecasts for CLP Holdings Ltd. and Hongkong Electric Holdings Ltd. CLP, Hong Kong’s biggest power supplier, slipped 2 percent after UBS reduced its share-price estimate. UBS cut its price forecast for Hongkong Electric, which dropped 1.6 percent. Shares also slid as investors took advantage of yesterday’s rally to sell. Cosco Pacific Ltd., Asia’s third-largest container-terminal operator, declined 4.9 percent after surging 23 percent yesterday, the biggest jump on the stock benchmark. “The market lacks direction; the majority of investors remain cautious,” said Renault Kam, a senior portfolio manager at Atlantis Investment Management in Hong Kong, which oversees $5 billion. The Hang Seng Index lost 125.67, or 0.8 percent, to 14,919.20 as of the midday break, after climbing as much as 1.1 percent. The Hang Seng China Enterprises Index, which tracks so- called H shares of Chinese companies, fell 0.3 percent to 8,113.44. The Hang Seng Index has tumbled 46 percent this year on concern a global recession will erode corporate earnings. The measure surged yesterday as U.S. President-elect Barack Obama pledged the biggest government spending program since the 1950s, and on speculation Chinese leaders will cut personal income tax to boost consumption and growth after their annual economic meeting currently under way. Hong Kong’s government said yesterday it will provide up to HK$100 billion ($12.9 billion) of loan guarantees to help businesses. Cosco Pacific Government measures “don’t necessarily help if companies don’t get orders,” Kam said. CLP, Hong Kong’s biggest power utility, slipped 2 percent to HK$54.40. UBS reduced its share-price estimate by 15 percent to HK$58 on lower earnings forecasts, according to a research note today. Hongkong Electric fell 1.6 percent to HK$43.90. UBS also cut its price target for Hongkong Electric by 4.8 percent to HK$45.20. The stock dropped 2.2 percent. The Hang Seng Utility Index’s 2.3 percent drop was the sharpest among the four industry groups tracked by the broader Hang Seng Index. Cosco Pacific retreated 4.9 percent to HK$6.66, the sharpest slump on the Hang Seng Index. The shares soared 23 percent yesterday after Macquarie Group Ltd. rated them “outperform,” citing the company’s global expansion. Cnooc Ltd., China’s biggest offshore oil producer, climbed 6.8 percent to HK$6.76. Crude oil futures surged 7.1 percent to $43.71 a barrel in New York yesterday. The contract was recently at $43.90 in after-hours trading. Three stocks fell for every two that advanced on the 42- member Hang Seng Index. December futures slipped 1 percent to 14,924. The following stock also rose in Hong Kong. Stock symbols are in parentheses after company names: China Cosco Holdings Co. (1919 HK), the world’s largest operator of iron-ore and coal ships, gained 66 cents, or 12 percent to HK$6.01, after bulk-shipping rates climbed for the first time in 14 days. Pacific Basin Shipping Ltd. (2343 HK), Hong Kong’s biggest dry-bulk shipping line, rose 15 cents, or 4.1 percent, to HK$3.80. The Baltic Dry Index, a measure of commodity-shipping rates, gained for the first time since Nov. 18, adding 1.2 percent. To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net

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