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![A pedestrian takes a look at the Hang Seng Index of Hong Kong stocks in Hong Kong, China, Feb. 17, 2009. Hong Kong stocks drop 510.48 points to close up at 12,945.40 on Tuesday. [Xinhua]](http://images.china.cn/attachement/jpg/site1007/20090218/0011111fa1560b05b2b905.jpg "A pedestrian takes a look at the Hang Seng Index of Hong Kong stocks in Hong Kong, China, Feb. 17, 2009. Hong Kong stocks drop 510.48 points to close up at 12,945.40 on Tuesday. [Xinhua]")
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A pedestrian takes a look at the Hang Seng Index of Hong Kong stocks in Hong Kong, China, Feb. 17, 2009. Hong Kong stocks drop 510.48 points to close up at 12,945.40 on Tuesday. [Xinhua] |
A broad sell-off in regional equities markets and concerns more blue-chip firms will report weaker-than-expected earnings sent Hong Kong's benchmark index lower Tuesday to end below 13,000 points for the first time in nine sessions.
The Hang Seng Index fell 510.48 points, or 3.79 percent, to 12,945.40, just above an intra-day low of 12,933.91 set in the afternoon session.
Turnover rose to 41.73 billion HK dollars (US$5.39 billion) from 34.60 billion HK dollars on Monday.
Analysts said they expect the blue-chip index to face further downward pressure in the coming weeks as a slew of Hong Kong's major listed companies announce their results, while continued uncertainties over the global economic outlook will further mute investor interest. They said the index will likely find some resistance at 12,800 points over the next few sessions, but could fall further, depending on the corporate results.
The sharp decline in Hong Kong's benchmark index tracked a similarly disappointing performance in Chinese mainland's stock markets, which succumbed to profit taking after a recent rally.
The benchmark Shanghai Composite Index ended down 2.9 percent at 2,319.44. Other regional markets also ended lower, with Japan's Nikkei down 1.4 percent at 7,645.51, and the Korea Composite Stock Price Index down 4.1 percent at 1,127.19.
China-related companies were among the day's biggest blue-chip decliners in Hong Kong. The Hang Seng China Enterprises Index, which tracks the movement of Chinese-registered companies listed locally, fell 4.9 percent to 7,193.33.
Of those H shares, aluminum producer Chalco fell 6.9 percent to HK$22.20, while oil producer PetroChina lost 6.0 percent to HK$6.00 and China Construction Bank was down 5.7 percent at HK$3.81.
![Pedestrians take a look at the Hang Seng Index of Hong Kong stocks in Hong Kong, China, Feb. 17, 2009. Hong Kong stocks drop 510.48 points to close up at 12,945.40 on Tuesday.[Xinhua]](http://images.china.cn/attachement/jpg/site1007/20090218/0011111fa1560b05b2d806.jpg "Pedestrians take a look at the Hang Seng Index of Hong Kong stocks in Hong Kong, China, Feb. 17, 2009. Hong Kong stocks drop 510.48 points to close up at 12,945.40 on Tuesday.[Xinhua]") |
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Pedestrians take a look at the Hang Seng Index of Hong Kong stocks in Hong Kong, China, Feb. 17, 2009. Hong Kong stocks drop 510.48 points to close up at 12,945.40 on Tuesday.[Xinhua] |
Index heavyweight China Mobile shed 4.4 percent to HK$70.60.
Investors were also concerned that companies may report financial results that fall below expectations, after Bank of East Asia announced its 2008 net profit fell 99.1 percent to HK$39 million, the bottom end of analysts' forecasts. Bank of East Asia bucked the downtrend to end up 2.2 percent at HK$15.90 on bargain hunting, after shedding more than 11 percent over the last four sessions on expectations of the weak result.
(Xinhua News Agency February 18, 2009)
