Market Outlook For Friday: Anson Chan And Yahoo!
Hong Kong, January 11 /SHfn/
Hong Kong stocks extended their losses on Thursday afternoon on rumors that Chief Secretary Anson Chan, considered
the conscience of Hong Kong, would resign on Friday. The Hang Seng Index plunged to a low of 15,060 before closing at
15,090, down 345 points or 2.3 percent for the day.
Excluding the speculation regarding Mrs Chan, the short-term outlook for the Hong Kong market remains bleak. The
share price of Yahoo! [YHOO], which operates the largest on-line portal in the world, tumbled 18.9 percent to close at
US$24.75 in after-hours trading following a profit warning by the Company.
S&P 500 futures were down 6 points in Asian trading, signaling that Wall Street will move lower tonight. However, it is the
NASDAQ, rather than the Dow or the S&P 500 that would be most affected by Yahoo!'s profit warning.
Support for the Hang Seng Index at 15,000 will not survive the first tick on Friday. However, traders say short covering
may see the 14,700 level hold.
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