Bank stocks tumble, led by ICBC
Updated: 2010-10-01 07:50
(HK Edition)
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Hong Kong bank stocks fell Thursday after Goldman Sachs Group Inc sold a stake in Industrial & Commercial Bank of China Ltd (ICBC), overshadowing advances by the city's real-estate companies.
ICBC lost 3.2 percent after Goldman Sachs sold 3.04 billion of its shares. China Construction Bank Corp sank 0.4 percent. China Resources Land Ltd fell 4.4 percent, leading declines by Chinese developers, after Credit Suisse Group AG said investors should continue reducing holdings of the shares.
"The Goldman Sachs sale of ICBC caused panic about mainland banks," said Francis Lun, general manager at Fulbright Securities Ltd in Hong Kong. "The overall mood in the market this month was good, but mainland developers are having no luck with the government trying to cool property prices."
The Hang Seng Index (HSI) dropped 0.1 percent to 22,358.17 at the close, reducing its September gain to 8.9 percent. That's the biggest monthly advance since July 2009. The Hang Seng China Enterprises Index declined 0.2 percent to 12,406.10.
Sun Hung Kai Properties jumped 3 percent to HK$134 after buying a site in the Fan Ling district for HK$459 million, more than the HK$370 million estimate in a Bloomberg survey.
New World Development Ltd advanced 3.99 percent to HK$15.64. The top five gains on the HSI were Hong Kong-based companies with businesses related to property.
"Local property developers are offsetting some of the declines today," said Fulbright's Lun Thursday.
Aluminum Corp of China Ltd tumbled 4.2 percent to HK$7.32. The stock's 14-day relative strength index, a moving average based on gains and falls, rose to 80 Wednesday, the highest level in more than two years. Readings above 70 indicate a price may be poised to fall.
Futures on the HSI were little changed at 22,328.
Bloomberg News
(HK Edition 10/01/2010 page3)