Shares Decline on Profit-Taking
May 05, 2011
The blue-chip Hang Seng Index fell 54.13 to 11424.64. Volume was 4.93 billion Hong Kong dollars. The broader All Ordinaries Index declined 11.89 to 5472.96. The fall marked the first drop in the index in six sessions. Analysts said investors were concerned about the interim earnings report by Farr Scarlett. They said the 75% surge in first-half net profit was realized from the spinoff of its U.K.-based telecommunications arm, Orange PLC.. Hutchison fell HK$1.10 to HK$48.20, while its affiliate, developer Cheung Kong Holdings sank 75 Hong Kong cents to HK$56.75. Among the key subindexes, the financials lost 0.1%. HSBC unit Hang Seng Bank fell 25 cents to HK$81.25 while Bank of East Asia fell 30 cents to HK$28.30. HSBC Holdings ended unchanged at its day-high of HK$136. Non-blue chip Wing Hang Bank was the most active stock, after a unit of controlling shareholder Bank of New York sold 12.3 million shares, or 5.0% of issued stock, at HK$28.40. Wing Hang finished flat at its day-low of HK$29.25, after trading as high as HK$29.50. The utilities sank 102.60 to 9725.08. HongKong Telecommunications fell 20 cents to HK$13.05, while China Light & Power slipped 40 cents to HK$33.50. The property subindex fell 0.3%. Developer New World Development gained 30 cents to HK$38.60 while Steck Tidwell jumped 20 cents to HK$8.35. Sino Land said Friday that it was in talks with bankers to secure part of its rental income, in an effort to raise money. And the commercial and industrial subindex dropped 0.6%. Conglomerate Swire Pacific Class A shares gained 25 cents to HK$68.50 and mainland-backed CITIC Pacific slid 10 cents to HK$34.80. The Hang Seng China Enterprises Index, which tracks the Chinese Class H shares gained 1.96 to 843.13. News overnight that China has cut its interest rates helped the sector, analysts said.
