Hong Kong stocks end flat

28 Jul, 2004

Hong Kong's leading stock index fell a slim 0.15 percent on Tuesday as a rally in property stocks ran out of steam and investors worried over signs that international funds are exiting Greater China. "Overall confidence is lacking because money continues to flow out of the region," said Alfred Chan, chief dealer at Cheer Pearl Securities.
The city's de facto central bank has intervened several times in the market over the past 10 days to support the Hong Kong dollar, which is pegged to the US currency.
Marked weakness in the currency is often a sign of fund outflows from the territory. The blue chip Hang Seng Index ended down 0.15 percent, or 18.51 points, at 12,301.32.
Volume was just below recent, thin summer averages with HK $10.6 billion (US $1.36 billion) traded.
Markets shut before upbeat results were posted by second tier firms Chinese TV maker Skyworth Digital Holdings Ltd and Hong Kong-based semiconductor designer Solomon Systech (International) Ltd.
But traders said markets were more focused on earnings reports from blue chip banks in the week ahead. A rally in property stocks lost momentum despite hopes that housing prices and rents will rise after data released on Friday showed that Hong Kong's near six-year bout of deflation is near an end.
The city's largest developer, Sun Hung Kai Properties Ltd finished flat at HK $66.50 after hitting a high of HK $67.25.
Wharf Holdings, which had rallied in recent days, fell 1.02 percent to HK $24.35, while mid-tier developer Hang Lung Properties Ltd was the top blue chip loser of the day, falling 2.24 percent to HK $10.90.
Banking stocks also lost their lustre despite high expectations for Friday's earnings report from Hong Kong's fifth largest lender, Bank of East Asia Ltd, which kicks off the blue chip reporting season.
Bank of East Asia fell 0.44 percent to HK $22.75.
Global bank and Hang Seng heavyweight HSBC Holdings Plc, which reports results on Monday, lost 0.43 percent to HK $115.
China state oil firm CNOOC Ltd was the top performing blue chip share of the day, rising 2.74 percent to HK $3.75 as world oil prices hovered above US $41 a barrel on supply worries.
The Hang Seng China Enterprise Index, which groups Chinese firms listed here, rose a narrow 0.19 percent to 4,309.65.
Heavily weighted oil refiner Sinopec Corp boosted the index although most other commodity shares lost ground on worries that China's central government could adopt further credit-tightening measures to cool the surging economy.
Sinopec ended 1.65 percent higher at HK $3.075, but metals giant Aluminium Corp of China Ltd (Chalco) fell 1.23 percent to HK $4.

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