Hong Kong share prices closed 0.55 percent lower on Wednesday, as profit taking in banking giants HSBC and China Construction Bank pulled the main index down, dealers said. The benchmark Hang Seng Index closed down 94.02 points at 17,059.62. Turnover was very high at 146.62 billlion Hong Kong dollars (18.80 billion US).
Dealers said the recent rally seems to have been overdone, but abundant liquidity and optimism about a global recovery will continue to support the market. "It's really hard to discern the direction for now as the market is largely driven by funding flows," said Ample Finance Group Director Alex Wong, according to Dow Jones Newswires.
China Construction Bank fell 3.82 percent to 4.79 dollars as investors took profit after Bank of America sold 7.3 billion US dollars of shares in the Chinese lender Tuesday. Additionally, an unnamed China Construction Bank shareholder sold 462 million US dollars of shares in the firm Wednesday morning, and another undisclosed shareholder is selling 124 million Hong Kong dollars of shares. Property stocks were mostly higher, with Cheung Kong rising 1.95 percent to 86.40 dollars and New World Development surging 8.67 percent to 11.78.
CNOOC ended 5.47 percent higher at 10.22 dollars, after June crude oil futures settled at a six-month high of 58.85 US dollars a barrel on the New York Mercantile Exchange overnight. Hong Kong bourse operator Hong Kong Exchanges & Clearing rose 0.37 percent to 109.80 dollars on strong turnover in the market. China Mobile was suspended from trading Wednesday pending the announcement of a new ex-dividend date, but the suspension was not expected to impact the blue chip when it resumes trading.
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