Tuesday, March 12, 2013

HK Shares End Down on China Growth Worries; Oi Wah Jumps on Debut

HK Shares End Down on China Growth Worries; Oi Wah Jumps on Debut
Hong Kong, E-finet (12/3) --  Hong Kong shares ended lower Tuesday on weakness in China stocks as investor confidence in China's economic recovery waned.

The blue-chip Hang Seng Index fell 200.22 points, or 0.9%, to 22890.60. Volume was 69.14 billion Hong Kong dollars (US$8.91 billion)--up from HK$59.03 billion on Monday.

'Confidence in China's growth recovery has taken a setback after the latest economic data,' Sun Hung Kai Financial wealth-management strategist Daniel So said. February data out over the weekend showed growth undershot expectations and inflation ticked up.

'There is a lot of wait and see going on. Investors are eyeing blue-chip results for trading cues; waiting for the conclusion of the National People's Congress on [March 17] for some policy clarity. For this week the HSI may be trapped between its 100-day and 50-day moving averages,' Mr. So added. That is about 22,500 points and 23,200, respectively.

Hong Kong railway operator MTR Corp. fell 2.3% to HK$31.95 after reporting 2012 underlying profit declined 6.6% on year to HK$9.78 billion. A near-term overhang for the stock is a fare review expected by the end of March.
New World Development rose 0.9% to HK$14.20. It is expected to spin off its hospitality assets.

Oi Wah Pawnshop Credit rose 33.7% to HK$1.31 on its trading debut. The initial public offering attracted interest because of the novelty factor. Its 100 million-share offering was oversubscribed more than 1,000 times.

http://www.finet.hk/mainsite/newscenter/DJPUBLIC/40935.html

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