Hong Kong shares close lower on profit taking ahead of Fed call on rates |
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Wed, 31 Oct 2007 09:03
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HONG KONG (Thomson Financial) - Hong Kong shares closed lower on Wednesday, ending a four day 2,300-point rally as cautious investors opted to lock in gains ahead of the Federal Reserve's decision on interest rates.The Federal Open Market Committee, the Fed's policymaking body, is expected to cut its key interest rate by a quarter percentage point to help the troubled US financial sector and keep the economy from slipping into a recession.Local investors have been firm believers in a rate cut, allowing the Hang Seng Index to soar close to the 32,000 level in recent days.But some analysts are of the view that the Fed could leave rates on hold because of inflation worries.The Hang Seng Index closed 285.64 points or 0.9 percent lower at 31,352.58, off the day's low of 31,159,54. The index touched 31,958.41 on Tuesday, its highest level ever.Volume traded totaled 21.09 billion shares worth 154.18 billion Hong Kong dollars.Property stock extended losses as block deals in Sun Hung Kai Properties and Hang Lung Properties gave investors an excuse to lock in profits.The sub-index closed 876.98 points or 2.3 percent lower at 37,128.56.Mainland stocks also closed lower with the China Enterprises Index down 318.32 points or 1.6 percent at 20,081.75.(1 US dollar = 7.80 Hong Kong dollars)parvathy.ullatil@thomson.com-pu/clCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Hong Kong shares end lower on renewed worry about subprime fallout 