Hong Kong stocks dip 0.1% with shrinking turnover
Written by Meenaa on Tuesday, November 18th, 2008
Hong Kong stocks dip 0.1% with shrinking turnover
HONG KONG, Nov. 17 (Xinhua) — Hong Kong stocks edged down 0.1 percent on Monday as investors remained cautious over the looming economic recession in the region.
The benchmark Hang Seng Index rose 41.69 points, or 0.31 percent, to open at 13,584.35 though leaders of the Group of 20 (G20) offered promises instead of concrete steps to rescue the world economy at the Washington summit in the weekend.
Worries over recession still loomed in the region as Japan’s gross domestic product receded for two consecutive quarters, down 0.1 percent in the third quarter, compared with 0.1 percent of growth the market expected.
The market once dropped as much as 265.02 points, or 1.96 percent, to the day’s lowest level at 13,277.64 during the morning session after Japan’s Nikkei index lost about 2 percent in reaction to the latest economic data in early trading.
Some investors entered the market as they expected more stimulus plans will be announced by China and other governments in the region, lifting the market out of the negative territory.
Trading was volatile as the Hang Seng Index jumped as much as 195.46 points, or 1.44 percent, to the day’s peak at 13,738.12 before weakening 13.13 points, or 0.1 percent, to close at 13,529.53.
Turnover shrank to 39.81 billion HK dollars (5.14 billion U.S. dollars) from Friday’s 44.74 billion HK dollars (5.78 billion U.S. dollars), one of the market’s lowest levels in years.
Among 42 components of the Hang Seng Index, declining shares led advancers 22 to 17, with three others unchanged.
Market heavyweight HSBC, which accounts for the largest weighting of the index, dipped 0.43 percent to 81.95 HK dollars.
Another blue-chip giant China Mobile, or the country’s largest mobile phone operator, outshone the market by gaining 1.32 percent to 68.95 HK dollars.
Hong Kong Exchanges and Clearing Ltd., the market’s sole operator, lost 7.56 percent to 60.55 HK dollars as investment banks cut its target price sharply to below 40 HK dollars on shrinking turnover.
Hong Kong’s property companies were heading towards different directions. Cheung Kong rose 3.29 percent to 67.6 HK dollars. SinoLand gained 1 percent to 6.1 HK dollars. SHK Property dropped 0.68percent to 58.4 HK dollars. New World Development fell 0.73 percent to 6.8 HK dollars. Hang Lung went down 0.65 percent to 15.3 HK dollars. Henderson Land retreated 1.12 percent to 26.6 HK dollars.
China Enterprise Index, or H-shares reflecting the performance of 42 companies registered in the Chinese mainland, softened 53.55points, or 0.76 percent, to 6,968.09 though stock markets in the mainland rose.
Energy companies were mixed as light and sweet crude oil dropped to about 56 U.S. dollars a barrel in Asia trading. PetroChina, the country’s largest oil producer, went down 0.34 percent to 5.81 HK dollars. Sinopec, Asia’s largest refiner, dropped 0.66 percent to 4.55 HK dollars. CNOOC, China’s largest offshore oil company, moved up 0.17 percent to 6.01 HK dollars.
Most of China’s banks and insurers were lower by retreating from its upsurge during the past weeks on the country’s 4 trillion yuan (586 billion U.S. dollars) economic-stimulus package. Bank of China, the country’s second largest bank, was the only bank that outperformed the market by 0.94 percent to 2.16 HK dollars. ICBC, China’s largest lender, dropped 1.33 percent to 3.7 HK dollars. China Construction Bank slid 0.73 percent to 4.11 HK dollars. China Life, the country’s largest insurance company, lost 1.83 percent to 21.45 HK dollars. Ping An skid 0.9 percent to 33.05 HK dollars. China Merchants Bank fell 4.08 percent to 13.16 HK dollars.
