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Hong Kong's key stock index dips 1.1 percent as investors take profits from recent gains

Hong Kong's key stock index dips 1.1 percent as investors take profits from recent gains

Hong Kong shares fell Thursday in lackluster trade as investors locked in profits after two days of gains.
The benchmark Hang Seng Index slid 285.87 points, or 1.08 percent, to 27,842.93 points.
The blue-chip index had edged up on opening, tracking overnight gains on Wall Street and on reports the Chinese government had approved plans for a high-speed wireless broadband network.
However, the index soon dropped after investors decided to sell stocks to lock in gains after a 4.1 percent rise in the market over the previous two trading sessions.
The property sub-index rose 0.2 percent, lending some support to the main index, but failed to lift it out of the red.
Property stocks were expected to continue to outperform the broader market in anticipation of rising property prices in 2008.
"Hong Kong-based property sector will be the major theme for 2008. I would expect overall Hong Kong-based property stocks to see a 10 percent to 15 percent further upside in 2008," Louis Tse at Value Convergence CEF Securities said.
Chinese telecommunication stocks gained on news the State Council, China's Cabinet, had approved a plan on a wireless broadband network, prompting speculation the government would soon award third-generation, or 3G, licenses to telecom operators.
China's Ministry of Information Industry and some analysts, however, downplayed the statement's significance on Thursday, saying it did not suggest a faster introduction of a 3G network. Nevertheless, China telecom stocks gained on the news.
China Telecom closed up 6.26 percent at HK$6.28. China Unicom gained 3.57 percent to HK$17.98. Fixed-line operator China Netcom was up 3.4 percent to HK$24.05.
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On the Net:
Hong Kong stock exchange official Web site:
http://www.hkex.com.hk


Updated : 2021-08-01 10:31 GMT+08:00