Market Ignores Nasdaq Rise
Dow Jones Newswires
HONG KONG -- Shares ended the week at a new 17-month low, as an overnight rebound on the Nasdaq failed to convince investors that the selloff is over.
The blue-chip Hang Seng Index closed Friday down 38.49 points, or 0.3%, to 12583.36, after closing in the previous session below 13000 -- the first time since October 1999. The broader All Ordinaries Index finished down 3.41 points at 5195.69.
Trading volumes were worth 11.00 billion Hong Kong dollars, compared with HK$9.01 billion in the previous session.
"People are still cautious because U.S. markets aren't stable yet," said Mark Wan, research manager with Tanrich Financial Group Ltd. The index improved slightly around midday, at one point trading 121.76 points higher, but the rally failed to hold and it dipped into negative territory about 15 minutes before the market closed.
The Nasdaq market jumped 3.7% overnight on the heels of a rally in the semiconductor sector, while the Dow Jones Industrial Average closed 1.0% lower amid earnings warnings and layoff announcements by companies including United Parcel Service and discount brokerage Charles Schwab.
In Hong Kong, market heavyweight HSBC Holdings shed another 1.4% to HK$89.50, hit by worries that its European businesses -- which contributed most of its profit in the past -- will follow the slowdown in the U.S. Shares of HSBC have dropped 26% since the beginning of February.
China Mobile dropped 2.6% to HK$33.30, adding to a 7.3% plunge in the previous session. But its rival, China Unicom , added 1.7% to HK$8.85, following an 11% fall Thursday. Investors have been dumping shares of the mainland-based operators on worries that a pending price war may hurt their profits.
Shares of Hutchison Whampoa were scooped up, ending the week 1.6% higher at HK$81.50, after the port and telecom operator reported a 71% drop in net profit Thursday due to lower one-off gains. "It has been oversold," said Wan with Tanrich.
The Tracker Fund, which tracks the Hang Seng Index, closed flat at HK$12.80, after ending below its initial public offering price of HK$12.88 for the first time Thursday.
Telecom and Internet company Pacific Century CyberWorks posted a new low since it merged with Hong Kong Telecom in August last year, closing down 0.7% to HK$3.575. PCCW is slated to report results Wednesday.
Some property counters, which had taken a big hit in the week, attracted buying. Sun Hung Kai Properties gained 1.4% to HK$72.75, after losing 4.0% Thursday. New World Development added 1.6% to HK$9.70.
However, other property stocks ended lower. Cheung Kong Holdings , which reported a fall in earnings Thursday, lost 2.1% to HK$80.50. Henderson Land shed 0.8% to HK$38.10, after it said net profit fell 53% in the six month to Dec. 31, 2000.
Funds switched into certain China stocks on continuing hopes of strong economic growth in China, sending the red chip subindex up 0.8% and H-share subindex up 1.5%. Chinese state media reported Premier Zhu Rongji reaffirming that China aims to achieve a gross domestic product growth rate of 7% in 2001, despite a slowdown in the U.S. and Japan.
Offshore oil company CNOOC Ltd. surged 5.2% to HK$7.15. Maanshan Iron & Steel jumped 11% to 46 Hong Kong cents. Angang New Steel surged 7.8% to 97 HK cents.
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