Leading Hong Kong shares ended lower on Thursday, dragged down by recent weaknesses on Wall Street and by investor worries that the market is losing steam after a furious, nine-month rally.
The benchmark Hang Seng Index fell for the third day, ending down 1.44 percent, or 190.14 points, to 13,024.06. But it managed to pull back up after falling below key support at 13,000 several times.
Traders and fund managers said March would be a month of consolidation as local equities were receiving little support from Wall Street.
Market volume totalled HK $21.43 billion (US $2.75 billion), compared with HK $18.6 billion on Wednesday.
"The market is just consolidating, but I think banking shares will still see buying interest, especially HSBC," said Charlotte Wun, a portfolio manager at RBC Investment Management (Asia) Ltd.
"Investors still like equities amid a low interest rate environment," Wun added.
All but eight of the 33 constituents ended the day lower, with index heavyweights HSBC Holdings Plc and China Mobile (Hong Kong) Ltd weighing on the market.
HSBC ended down 0.83 percent at HK $120, while China Mobile lost 3.26 percent to HK $25.20. Both closed at one-month lows.
After the market close, Sun Hung Kai Properties Ltd, one of the city's leading developers and an index heavyweight, posted a 22 percent drop in first-half earnings to HK $2.84 billion, slightly better than the analyst forecast. SHK fell 2.03 percent to HK $72.50 ahead of the results announcement.
Shares in property-to-airline conglomerate Swire Pacific Ltd recouped some early losses to end down 1.42 percent at HK $52 after the firm posted forecast-beating 2003 net profit of HK $4.92 billion.
Newcomers TOM Online Inc and diesel engine maker Weichai Power Co Ltd had mixed fortunes amid the sliding broader market. TOM Online, a wireless services firm backed by tycoon Li Ka-shing, ended down 6.66 percent to HK $1.40 from its offer price of HK $1.50 as investors shunned Internet-related shares due to bad memories left behind from the burst of hi-tech bubble.
The Shanghai composite index, grouping hard-currency B shares and yuan-denominated A shares, ended up 0.81 percent.
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