Hong Kong stock market opened higher Thursday on announcement of
expected rate cuts but failed to hold on as concerns over the U.S.
economic future surfaced again in the afternoon.
The benchmark Hang Seng Index opened at 23,789.72, up 136.03
points or 0.58 percent, after the Hong Kong Monetary Authority
followed the Federal Reserve to announce a half percentage point
rate cut.
But the index soon turned to move downward before closing at 23,
455.74, down 197.95 points or 0.84 percent. It moved between 23,
887.17 and 23,052.95 during the volatile session on a turnover of
110.65 billion HK dollars (14.19 billion U.S. dollars).
The performance of the key barometer was currently below the
250-day moving average of 23,592, the mark that has usually been
called a bull/bear threshold in spite of disagreements from some
analysts.
It also meant that the Hang Seng Index lost a total of 4,536.91
points, or 15.67 percent during the volatile month of January.
The two rate cuts by the United States Federal Reserve in the
past week were nothing beyond expectations of the market, analysts
said, adding that volatility was expected in the near term.
Some have also been toning down their forecast for the next
quarters.
Sixteen of the 43 blue chips on the Hong Kong market turned out
gainers, outnumbered by the number of losers, which totaled 26.
PCCW, the local telecommunications operator and a blue chip,
remained flat.
The heavyweight banking giant HSBC Holdings lost 1.5 HK dollars,
or 1.28 percent, to close at 115.6 HK dollars, while its local unit
Hang Seng Bank lost 2.7 HK dollars, or 1.73 percent, to end at
153.2 HK dollars.
China Mobile, the mainland's largest mobile carrier, went up 0.7
HK dollars, or 0.62 percent, to close at 114.3 HK dollars.
The finance sub-index suffered the most among the four major
categories, moving down 702.18 points, or 2.13 percent, at
32,327.08, followed by the properties genre, which closed at
33,618.07, down 229.58 points or 0.68 percent.
Bank of China continued its losing run at 3.17 HK dollars, down
0.1 HK dollars or 3.06 percent while BOC Hong Kong gained 0.26 HK
dollars, or 1.37 percent, following rate cuts by the local Monetary
Authority.
Ping An, one of the Chinese mainland's major insurance players,
slumped 3.2 HK dollars, or 5.58 percent, to close at 54.2 HK
dollars while China Life lost 1 HK dollar, or 3.45 percent, to end
at 28 HK dollars.
The commerce and industries sub-index was slightly higher at 13,
935.19, up 20.37 points, or 0.15 percent while the utilities
category outperformed the market by gaining 389.32 points, or 0.94
percent, partly thanks to increasing energy consumption in a wintry
season across China.
Hong Kong Electric went up 0.3 HK dollars, or 0.68 percent, to
close at 44.45 HK dollars while Hong Kong and China Gas added 0.55
HK dollars, or 2.65 percent, to close at 21.3 HK dollars.
China Shenhua, however, went down 1.35 HK dollars, or 3.27
percent, at 40 HK dollars.
Mainland shipping giant China Cosco gained 1.9 HK dollars, or
12.03 percent, at 17.7 HK dollars, thanks to the strength of an
important industry index.
(Xinhua News Agency February 1, 2008)
