HK, China shares fall, profit-taking hit banks
Friday, 5 February 2010
HONG KONG/SHANGHAI, Feb 4 (Reuters): Shares in Hong Kong and China weakened Thursday, as mainland banks succumbed to profit-taking, while concerns over more share supply weighed on the Shanghai stock market.
Investors sold Hong Kong-listed Chinese lenders after the investment arm of China's sovereign wealth fund denied a newspaper report that it would buy new shares from the country's top lenders.
China's key stock index fell 0.28 per cent, with large-capitalisation shares relinquishing some of the previous day's gains after China's securities regulator denied rumours that it had suspended the review and approval of new IPOs.
The benchmark Hang Seng Index ended down 1.84 per cent or 380.44 points at 20,341.64, snapping a three-day rise.
Turnover fell to HK$61 billion ($7.9 billion), the lowest since Jan. 4, from Wednesday's HK$68.64 billion, with investors sidelined ahead of US jobs data due Friday.
"The US government is going to release important data tomorrow, keeping players cautious," said Kenny Tang, research head at Redford Securities. "Sentiment may improve after the Lunar New Year holiday, with a lot of bargain-hunting interest."
The China Enterprises Index of top locally listed mainland Chinese stocks shed 1.97 per cent to 11,605.88.
Some investors took profit after the HSI gained 3 per cent in the last three sessions, dealers said.
Industrial and Commercial Bank of China (ICBC) fell 2.4 per cent, reversing Wednesday's 2.3 per cent rise. China Merchants Bank slipped 1.7 per cent after rising more than 6 percent in the last two sessions.
Gold counters eased, as gold prices retreated. Realgold Mining fell 3.9 per cent and Zijin Mining was down 1.2 per cent.
Chinese computer maker Lenovo Group erased earlier losses to end up 0.2 per cent, after it reported forecast-beating results.
China's stock market has been weighed down in recent weeks by worries about heavy share supplies, fuelled by steady approvals of new initial public offerings.
The Shanghai Composite Index ended down at 2,995.308 points, after rising 2.4 per cent Wednesday in its biggest daily percentage gain in nearly six weeks.
Investors sold Hong Kong-listed Chinese lenders after the investment arm of China's sovereign wealth fund denied a newspaper report that it would buy new shares from the country's top lenders.
China's key stock index fell 0.28 per cent, with large-capitalisation shares relinquishing some of the previous day's gains after China's securities regulator denied rumours that it had suspended the review and approval of new IPOs.
The benchmark Hang Seng Index ended down 1.84 per cent or 380.44 points at 20,341.64, snapping a three-day rise.
Turnover fell to HK$61 billion ($7.9 billion), the lowest since Jan. 4, from Wednesday's HK$68.64 billion, with investors sidelined ahead of US jobs data due Friday.
"The US government is going to release important data tomorrow, keeping players cautious," said Kenny Tang, research head at Redford Securities. "Sentiment may improve after the Lunar New Year holiday, with a lot of bargain-hunting interest."
The China Enterprises Index of top locally listed mainland Chinese stocks shed 1.97 per cent to 11,605.88.
Some investors took profit after the HSI gained 3 per cent in the last three sessions, dealers said.
Industrial and Commercial Bank of China (ICBC) fell 2.4 per cent, reversing Wednesday's 2.3 per cent rise. China Merchants Bank slipped 1.7 per cent after rising more than 6 percent in the last two sessions.
Gold counters eased, as gold prices retreated. Realgold Mining fell 3.9 per cent and Zijin Mining was down 1.2 per cent.
Chinese computer maker Lenovo Group erased earlier losses to end up 0.2 per cent, after it reported forecast-beating results.
China's stock market has been weighed down in recent weeks by worries about heavy share supplies, fuelled by steady approvals of new initial public offerings.
The Shanghai Composite Index ended down at 2,995.308 points, after rising 2.4 per cent Wednesday in its biggest daily percentage gain in nearly six weeks.