Hong Kong stocks set for stronger opening Friday
Predictably, Hong Kong shares ended lower Thursday, snapping a three-session winning streak, following the lead from Wall Street and overseas markets.
Hang Seng Index fell 87.95 points, or 0.41%, to end at 21,277.28. However this was not the low of the day, at one time the Index was trading at 21,157.
The fall is likely to be temporary as investors will likely follow the lead on Friday of bourses trading higher overnight.
Dealers spoken to believe there is pent up cash from long funds that is still waiting to move into the Hong Kong market to take advantage of low historic price earnings multiples.
Financial stocks led the selloff on Thursday, tracking declines in regional peers after Moody's Investors Service placed various ratings of 114 financial institutions in 16 European countries on review for a possible downgrade, citing pressures from a difficult operating environment in Europe.
Financial institutions were lower with Agricultural Bank of China off 0.8 per cent to HK$3.75, Bank of China 1.5 per cent lower at HK$3.31 and Asia-focused HSBC losing 0.65 per cent at HK$69.35.
Chinese banks were broadly weaker after a mainland news outlet reported on Thursday that China's top four state banks had extended 30 billion yuan ($4.76 billion) in new local currency loans in the first 12 days of February an unamed source said.
This sparked some concern that full monthly figures could come below expectations. China Construction Bank Corp slipped 1.1 per cent, while Bank of China Ltd declined 1.5 per cent.
The Chinese central bank released its monetary policy implementation report for the fourth quarter of 2011, which suggested policy easing would be gradual since inflation remained a focus, even with growth slowing.
The Shanghai Composite Index, which covers A and B shares, shed 9.84 points to 2,356.86 on turnover of 83.8 billion yuan ($A12.48 billion).
Other Market analysis articles
- Beijing's struggle to keep arable land away from the developers
- The iron-ore deposit that grows with every headline
- The end of scientific development, return to property speculation
- CNOOC looks to unconventional oil and gas to increase production
- Hang Seng Index climbs 1.3%, strong start to year
- China's Shanghai Index kicks on signs of easier monetary policy
- Guangdong inks 10% GDP growth
- Hang Seng Index hits three months high
- China stock index broaches 2,300 level
- China Guangdong Nuclear Power Group closer to offer for uranium company
- China's steel output up 8.9% in 2011
- Shanghai's GDP grows 8.2% in 2011, strong retail sales
- Guangxi is now China's largest coal importer
- Hong Kong stocks climb 1.6%, highest close since Sept. 1
- Hang Seng Index unchanged in light Fri trading