Hong Kong shares lower in early trade in line with Wall St, Tokyo weakness |
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Wed, 10 Jan 2007 04:02
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HONG KONG (XFN-ASIA) - Share prices were lower in early trade as the market extended a consolidation phase from yesterday in the absence of strong leads as Wall Street's lackluster performance overnight provided no support while Tokyo came under selling pressure in the morning session, dealers said.They said buying sentiment remained weak as the market sought a new direction following recent strong gains, with concern in the region over the next trend in US interest rates continuing to be an underlying trading factor to consider.As of 10.30 am, the Hang Seng index was down 255.64 points or 1.31 pct at 19,642.44, off a low of 19,606.59 and a high of 19,693.70Turnover was 11.83 bln hkd.'The market extended yesterday's losses after a weak showing on Wall Street and Tokyo's sharp falls in early trade. Buying sentiment remains weak in the absence of fresh trading leads,' Conita Hung, research head at Delta Asia Securities, said.Hung said, however, the downside may be limited by some bargain-hunting in afternoon trade.'Trading remains volatile. Some investors may chase after laggards like motor and toll road stocks, while institutional investors will likely keep selling China financials,' Hung said.Properties were lower on continued profit-taking, with the sectoral sub-index losing 314.98 points or 1.29 pct to 24,153.38.Cheung Kong fell 2.0 hkd or 1.97 pct to 99.7 and Sun Hung Kai shed 0.60 hkd or 0.64 pct to 93.50.Henderson Land was down 0.25 hkd or 0.52 pct at 47.65, Sino Land down 0.12 hkd or 0.61 pct at 19.50, and Wharf down 0.10 hkd or 0.34 pct at 29.0Local banks were mixed, with HSBC losing 1.20 hkd or 0.85 pct to 140.3, Hang Seng bank up 0.30 hkd or 0.28 pct at 107.90, Bank of East Asia down 0.20 hkd or 0.46 pct at 43.75 and BOC Hong Kong up 0.10 hkd or 0.50 pct at 20.25.China financial stocks were lower, with China Construction Bank down 0.06 hkd or 1.27 pct at 4.66, ICBC down 0.10 hkd or 2.14 pct at 4.58, Bank of Communications down 0.13 hkd or 1.51 pct at 8.44 and Bank of China down 0.06 hkd or 1.47 pct at 4.03.Hung said China bank stocks will likely see further downside in the near term.China Life lost 0.70 hkd or 2.74 pct to 24.85, after yesterday's 4.66 pct loss.Dealers said China Life's strong debut on the mainland yesterday had been widely expected and therefore, did not provide a sustainable upside for its H shares in Hong Kong.They noted that the price difference between China Life's A share and H share will be gradually minimized in the long run.Other Hong Kong-listed insurers were also lower after early gains, with Ping An losing 1.25 hkd or 3.15 pct to 38.45 and PICC P&C down 0.13 hkd or 3.14 pct at 4.01.Among large-caps, China Mobile lost 1.20 hkd or 1.81 pct to 65.25 and Hutchison Whampoa fell 0.30 hkd or 0.38 pct to 79.0.The Hang Seng China Enterprises Index was down 203.36 points or 2.04 pct at 9,764.12.(1 usd = 7.8 hkd)roby.lau@xfn.comrl/net
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Hong Kong shares open lower in line with Wall St, Tokyo weakness 