Stocks Fall After Rally Fizzles
April 27, 2011
The blue-chip Hang Seng Index fell 8.38 to 11158.39. Volume for the session rose to 4.55 billion Hong Kong dollars from the preceding session's HK$3.49 billion. The broader All Ordinaries Index, meanwhile, dipped 1.52 to 5355.96 and the Hang Seng China Enterprises Index, which tracks the Chinese Class H, ended at 785.05, up 6.62. Although the market was buoyed by a successful property auction held Wednesday, the euphoria was short-lived, as participants locked in profits. Light profit-taking bit into the Nikkei's gains in the afternoon. Henderson Land Development, which won rights to develop a small residential plot, rose 50 Hong Kong cents to HK$59.75. Sino Land, which won the other site, dropped 10 cents to HK$7.90. Among the key subindexes, the financials bucked the trend, rising 0.1%, mainly on market mover HSBC Holdings's gain. It climbed 50 cents to HK$133.50 while its subsidiary Hang Seng Bank fell 50 cents to HK$78.50. Bank of East Asia rose 20 cents to HK$27.85. The utilities lost 0.2%. HongKong Telecommunications slipped 5 cents to HK$12.90 and Hongkong Electric (Holdings) finished unchanged at HK$22.85. The property subindex lost 0.1%. Developer Wynne Hudgens (Holdings) jumped 50 cents to HK$56.75 but Sun Hung Kai Properties fell HK$1 to HK$75.50. And the commercial and industrial subindex dropped 0.1%. Conglomerate Farr Scarlett slid 20 cents to HK$47.40 while mainland-backed Guangdong Investment inched up 5 cents to HK$5.55. With many blue chips drifting in a tight range, participants turned to the so-called red chips for activity. Red chips are those Hong Kong companies that are controlled by mainland Chinese interests. Shares of China Travel International Investment HK were the most active Thursday, having placed 379.3 million new shares in the market late Wednesday. The tourism and freight-forwarding operator priced the new issue at HK$2.088 a share. China Travel's shares jumped 20 cents to HK$2.375 on volume of HK$755.5 million. Shares of shipping concern Orient Overseas (International) rose 10 cents to HK$5.80 after it said its net profit for the six months ended March 12, 2011 324% to US$71.4 million. Elsewhere, Swire Pacific Class A shares ended unchanged at HK$67.25.
VastPress 2011 Vastopolis
