Shares slip for 4th day as investors cash out
Updated: 2008-12-25 07:36
By Lillian Liu(HK Edition)
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Hong Kong stocks ended slightly lower yesterday, slipping for a fourth day in a row, as heavyweight players extended losses and investors locked profits before the Christmas holiday. However, aviation stocks soared on lower energy prices.
The bourse ended trading at midday and will remain closed till December 29. The benchmark Hang Seng Index (HSI) dropped 6 percent over the last three days.
Most airline stocks notched up strong gains amid sliding crude oil prices dragged by weakening demand. Oil stayed below $40 a barrel in Asian trading yesterday, compared with its record high of $147 a barrel in July.
Cathay Pacific, Asia's third-largest carrier, rose 4 percent while Air China, the country's flag-carrier airline, jumped 1.3 percent. China Southern Airlines added 3.8 percent while smaller rival China Eastern Airlines advanced 11.2 percent.
The HSI ended 0.26 percent or 36.65 points lower at 14,184.14. Turnover was HK$18.4 billion compared with HK$17.5 billion by midday on Tuesday.
"The measures should offer strong support to the index to remain above 14,000 points for the rest of the year," said Dick Lee, an analyst at Phillip Securities.
Hang Seng China Enterprises Index (HSCEI), which tracks Hong Kong-listed mainland companies, retreated 0.45 percent and closed at 7685.17 points.
The benchmark index has so far lost 49 percent in 2008, its worst annual performance since 1974, as the global financial crisis pulled economies worldwide into recessions.
Andrew To, a sales director of Tai Fook Securities, said he expects the market to pick up pace next week as investors take to window dressing to make a year deemed the worst in a quarter of a century somehow look less bleak.
Hong Kong property developers rebounded from recent falls, which were driven by worries over sliding housing prices.
Tycoon Li Ka-shing's Cheung Kong Holdings added HK$1.80, or 2.5 percent, to HK$73, after the local newspapers said a US public pension fund is in talks to buy more than HK$1 billion worth of Hong Kong homes from the company.
Sino Land climbed 5.4 percent.
Yue Yuen Industrial (Holdings) Ltd, the world's largest maker of sports shoes, slipped 2.92 percent at HK$15.92. China Shipping Development declined 4 percent to HK$6.91.
Ben Kwong, head of research at KGI Asia, said the HSI might drop below 14,000 points level in the remaining days of the year since more investors might want to take profits before upcoming holidays.
(HK Edition 12/25/2008 page2)