Wednesday, September 10, 2008

Hong Kong stocks end lower on profit-taking

Profit-taking in blue chips after the benchmark index's sharp rise in the previous session pulled Hong Kong shares lower Tuesday.

The blue-chip Hang Seng Index fell 303.16 points, or 1.46 percent, to 20,491.11 after trading fluctuating between 20,299.97 and 20,543.15 during the session.

Turnover fell to 47.90 billion HK dollars (6.15 billion U.S. dollars from Monday's 68.41 billion HK dollars .

The index had risen 4.3 percent Monday on news of the bailout for Fannie Mae and Freddie Mac. Analysts said the local market is likely to continue to decline in the near term as global economic uncertainties remain an overhang.

The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 0.1 percent at 2,145.78 after two straight days of sharp falls. But turnover was light and analysts said China shares will likely fall further on concerns over a potential drop in corporate earnings and an increase in share supply.

China Mobile fell 2.2 percent to 84.00 HK dollars on profit- taking after it rose 4.8 percent Monday.

Cnooc, China's largest listed offshore oil-and-gas producer by capacity, dropped 3.5 percent to 10.46 HK dollars on falling crude oil prices.

PetroChina ended 2.3 percent lower at 9.28 HK dollars after rising 3.4 percent Monday.

Alumina and aluminum producer Chalco slumped 7 percent to 6.02 HK dollars on concerns over its margins.

Chinese banks fell on lingering concerns over earnings in the second half as the government is not likely to relax its monetary tightening measures, analysts said. Bank of Communications dropped4.3 percent to 8.54 HK dollars, China Construction Bank fell 1.6 percent to 6.10 HK dollars and Industrial and Commercial Bank of China was 1 percent lower at 5.23 HK dollars.

The properties sub-index fell 435.87 points, or 1.76 percent, at 24,354.75.

The commerce and industry sub-index went down 262.91 points, or 2.40 percent, to 10,712.88.

The utilities sub-index rose 187.57 points, or 0.43 percent, at 43,857.03.

The Finance sub-index slipped 259.71 points or 0.79 percent at 32,812.14.

Source: Xinhua

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