HK Shares snap six sessions of gains, losing 1.7%
Hong Kong's benchmark index snapped a six consecutive session gaining streak to end lower Monday, amid strong profit-taking pressure, with Chinese property developers and lenders leading the decline.
The Hang Seng Index fell 341.26 points, or 1.7%, to 20,160.41, ending a 7.8% gain across six sessions, with investors showing disappointment with the weakness of China's equities market after the week-long Lunar New Year holidays there.
Local shares were also dragged by concerns about U.S. economic growth after gross domestic product numbers there came in below expectations.
Exporters fell in Hong Kong as U.S. growth slowed and ahead of the first European Union summit of 2012 dealing with the debt crisis.
Li & Fung fell 4.9 percent to HK$17.50. Cosco Pacific Ltd., China’s largest shipping line, fell 3.4 percent to HK$10.84. Hutchison Whampoa Ltd., an operator of retail chains and ports that gets 53 percent of its revenue in Europe, fell 1.4 percent to HK$72.50.
New World Development fell 3.6 percent to HK$8.31. Sino Land Co. dropped 1.2 percent to HK$12.94. Sun Hung Kai Properties Ltd., Hong Kong’s top developer, lost 2.3 percent to HK$107.20.
China Resources Land Ltd., a state-owned developer, tumbled 3.1 percent to HK$13.66. Shimao Property Holdings Ltd., a developer which earns all of its revenue on the mainland, plunged 6.7 percent to HK$7.98.
Zijin Mining Group Co., China’s biggest gold producer by market value, posted its biggest decline in eight weeks after a fatal copper smelting accident led to a facility being shut down. The stock fell 4.2 percent to HK$3.43.
Chinese Resources Land fell 3.1% at HK$13.66, adding to a 2% decline Friday after a five-session gain of 11.6%, on anticipation of softening property prices. Rival China Overseas Land fell 3.1% to HK$14.52.
Developer Country Garden dropped 11.3% to HK$3.22, after brokerage Citigroup Monday downgraded the stock to Sell from Neutral and lowered its target price to HK$3.02 from HK$3.31.
Bank of Communications fell 3.8% to HK$6.10, after a 9.7% rally over the previous six sessions, because of profit-taking pressure. Bank of China ended 2.7% lower at HK$3.28.
The city's benchmark index traded between 20,144.95 and 20,518.00 during the session, with market volume totalling HK$66.52 billion, up from HK$58.51 billion Friday.
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