Stocks News
- HK shares dragged down on wall street decline, futures expiry -- June 26
Date: 27-Jun-2007 Sources: (People's Daily)
A decline on Wall Street and trading activity ahead of a futures settlement this week dragged Hong Kong shares slightly down Tuesday by 18.78 points, or 0.09 percent.
The benchmark Hang Seng Index opened at 21,800.77 and closed at 21,803.57, fluctuating between 21,755.29 and 21,950.02 during the day's trading, with a total market turnover of 74.21 billion HK dollars.
Two of the four major stock categories lost ground. The finance fell 105.36 points, or 0.31 percent to close at 33,461.35. The Commerce and Industry went down 25.68 points, or 0.21 percent to close at 12,317.70. The other two major stock categories gained. The Utilities rose 226.59 points, or 0.66 percent to close at 34, 743.65. The Properties moved up 256.37 points, or 1.02 percent to close at 25,503.92.
Blue chips in Hong Kong were mixed. HSBC, the heavyweight of the market, went down 0.07 percent to close at 144.10 HK dollars, on concerns about the deteriorating quality of the subprime mortgages.
Mobile Giant China Mobile rose 0.65 percent to 84.80 HK dollars on news of a possible A-share listing.
The three insurers witnessed profit taking finally after days of strength. China Life was down 0.55 percent to 28.30 HK dollars. Ping An went down 4.03 percent to 54.80 HK dollars. PICC P&C fell 8.26 percent to 6.22 HK dollars.
Analysts said local stocks will likely move in a narrow range between 21,800 and 22,000 before Thursday's futures expiration, but they said flush liquidity would continue to support share prices in the long term.
'In the long term, the index is still in an upward trend due to ample liquidity, but in the short term, coming IPOs will likely pull liquidity out of the stock market in July,' said Y.K Chan, strategist at Phillip Capital Management (HK).
'There is a strong resistance level at 22,000. The index needs additional good news like a further expansion of China's Qualified Domestic Institutional Investment program to pass through the resistance level,' said UOB-KayHian Ltd. director Steven Leung.
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