Hong Kong shares lower on rate cut disappointment/HSI below 13,000 pts

HONG KONG (AFX-ASIA) - Share prices were lower in early morning trade in line with overnight losses on Wall Street with investors disappointed by the latest 50 basis point interest rate cuts by the Federal Reserve, which was lower than the market anticipation of a 75 basis point reduction, dealers said.	     The Hang Seng Index fell below the 13,000-point mark with interest rate sensitive property stocks leading the current losses, they said, adding the market was looking to find next support around 12,800 points. 	    At 10:40 am, the Hang Seng index was down 275.08 points at 12,948.74 on turnover of 1.88 bln hkd.	    The Hang Seng March contract last traded at 12,930 points.	    The Hang Seng China Enterprises index was down 2.29 points at 386.40, while the CAC index was down 13.26 points at 1,038.49.	    TraHK was down 0.25 hkd at 13.15 on volume of 4.17 mln units.	    The GEM index was down 1.26 points at 265.82 on turnover of 14.46 mln hkd.	    MTR Corp dropped 0.20 to 12.75 on trade of 1.28 mln shares.	    Peter Lai, director of OCBC Securities, said the Dow Jones Industrial Average and the NASDAQ composite index fell right after the Fed announced the 50 basis point interest cuts last night.	    "As the market had expected the Fed would cut another 75 basis points at the FOMC meeting, the disappointment has imposed a big psychological impact on investor sentiment," Lai said.	    Lai said worries about the deteriorating U.S. economy remained in place despite the latest interest rate reductions.	    "Few can be sure when the U.S. economy will be able to stage a turnaround after the 150 basis point cuts since January," Lai said.	    Lai said the interest rate sensitive property sector was a victim of the rate disappointment this morning.	    Cheung Kong fell 1.00 to 86.00, Sun Hung Kai Properties lost 3.75 to 74.25, Henderson Land shed 1.60 to 40.70 and New World Development fell 0.35 to 10.35.	    Sino Land lost 0.225 to 3.575 after its six months to December results.	    Hysan dropped 0.80 to 11.45 after its 2000 results.

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