Hong Kong stocks on Friday moved within a relatively narrow
range, opening and closing lower on the last but one trading day
ahead of yearend, as investors were cautious over uncertainties
lying ahead.
The blue chip Hang Seng Index opened at 27,511.54, down 331.39
points or 1.19 percent, climbed to narrow its losses at 27,546.82
at the end of morning trading, but lost more ground in the
afternoon to finish even lower at 27,370.60.
The closing figure, though lower from the previous session and
even lower from the record high of 31,638 points seen on Oct. 30,
2007, was much higher than the highest level of the benchmark index
during the year 2006 at 20,001 points.
The market's key barometer on Friday moved within the range of
27,296.86 and 27,678.40 on a turnover of 78.22 billion HK dollars
(10.03 billion U.S dollars), modest if compared with the usually
remarkable volume figures in recent months but higher than the
turnover of 76.6 billion HK dollars recorded on Thursday.
Only 5 out of the 43 blue chips were gainers, with BOC Hong Kong
moving up 0.4 HK dollars, or 1.9 percent, at 21.45 HK dollars while
Henderson Land added 1.15 HK dollars, or 1.61 percent, to close at
72.75 HK dollars.
The heavy-weighted HSBC Holdings lost 0.6 HK dollars, or 0.46
percent, at 131 HK dollars while its local unit Hang Seng Bank went
down 4.1 HK dollar, or 2.54 percent, to close at 157.6 HK
dollars.
China Mobile, the largest mobile carrier by far on China's
mainland, continued its losing run, down 3.6 HK dollars, or 2.6
percent, to close at 135 HK dollars.
Analysts attributed the decline to falls in regional markets and
the U.S. markets, as well as concerns over the uncertainties
falling out from the assassination of Pakistan opposition leader
Benazir Bhutto in her country on the previous evening.
Concerns over the U.S. economic prospect, following weaker-than-
expected goods orders data released overnight, coupled with rising
oil prices and the settlement of December futures, also kept
investors cautious, they added.
Analysts further said they expected the Hang Seng Index to move
within a narrow range at the present level, with only a shortened
session left on Monday for 2007.
Bank of East Asia, one of the major local banks operating in the
Hong Kong Special Administrative Region in south China, was lower
in the morning but rebounded to close up 1.4 HK dollars, or 2.72
percent, at 52.9 HK dollars.
The rise came after news that Criteria CaixaCorp, a unit of
Spanish bank La Caixa, had agreed to raise its stake to 8.89
percent from 4.34 percent, at the cost of 3.95 billion HK dollars
(0.51 billion U.S. dollars), a move that was expected to help
strengthen Bank of East Asia's capital base by about 1.5
percent.
The news also helped share prices of BOC Hong Kong, which had
bought a stake of similar size in Bank of East Asia at the cost of
3.95 billion HK dollars.
Bank of China, one of the big four state-owned commercial banks
on the mainland, went down 0.08 HK dollars, or 2.08 percent, at
3.77 HK dollars.
The finance sub-index lost 436.79 points, or 1.1 percent, at 39,
245.20, with ICBC losing 0.13 HK dollars, or 2.29 percent, at 5.55
HK dollars and insurer China Life down 0.8 HK dollars, or 1.96
percent, at 40.05 HK dollars.
The utilities sub-index went down 407.17 points, or 1 percent,
at 40,296.48.
The commerce and industry issues suffered the most among the 4
categories, down 365.46 points, or 2.2 percent, at 16,263.14,
followed by the properties genre, down 821.09 points, or 2.19
percent, to close at 36,664.82.
(Xinhua News Agency December 29, 2007)
