Hong Kong shares close morning lower on profit-taking/U.S. economy concerns

HONG KONG (AFX-ASIA) - Share prices closed the morning lower as investors locked in profit after yesterday's rebound with sentiment returning to caution over an economic slowdown in the U.S. and bad loans of Japanese banks, dealers said.	    They said despite yesterday's significant gains, the market still lacks momentum to move higher ahead of U.S. March consumer confidence data due tonight and final U.S. GDP data due on Thursday.	    The Hang Seng index closed the morning down 57.75 points at 12,892.74, off an early high of 13,056.32 and off an early low of 12,869.87, on turnover of 3.87 bln hkd. 	    The Hang Seng March contract last traded at 12,920 points.	    The Hang Seng China Enterprises index was down 2.50 points at 393.62 and the CAC index was down 3.91 points at 1,052.52.	    TraHK was down 0.15 at 13.05 hkd on volume of 2.60 mln units.	    The GEM index was down 2.05 points at 259.42 on turnover of 43.87 mln hkd.	    MTR Corp was down 0.10 at 12.70 hkd.	    The market opened higher to trade above the 13,000 point level before it fell back on profit-taking.	    Herbert Lau, head of research with Celestial Asia, investors tended to take money and stay on the sidelines after recent gains.	    "Uncertainty over U.S. equity markets remains despite the latest rebound ... Problems related to the U.S. economy and Japan's deteriorating financial system need to be solved," Lau said.	    Dealers said the property sector reversed yesterday's significant gains.	    Cheung Kong fell 0.75 hkd to 81.00, Sun Hung Kai Properties lost 0.50 to 74.75 and New World Development shed 0.20 to 10.20, while Henderson Land was unchanged at 39.50.	    Wharf rose 0.55 to 20.80 on positive rental income prospects.	    Lau said telecom stocks mostly fell in line with the late retreat on NASDAQ overnight. 	    Hutchison Whampoa fell 0.50 to 82.50 and China Mobile lost 0.60 to 34.90.	    China Unicom fell 0.35 to 8.85, while Pacific Century CyberWorks rose 0.10 to 3.55 on a techncial rebound.	    In the bank sector, HSBC was unchanged at 91.25, while Hang Seng Bank gained 0.50 to 91.25.	    Bank of East Asia fell 0.10 to 17.85.	    Dao Heng Bank underperformed the sector, down 1.10 at 35.60, in rangebound trade.	    On the GEM board, tom.com was down 0.02 at 1.98 and Sunevision down 0.025 at 2.125.	    Li & Fung rose 0.60 to 13.35 after its better than expected 2000 results.	    Among China plays, China Merchants was unchanged at 5.35, while it said it has agreed to acquire a 23.9 pct stake in China Everbright Asia Pacific for 17.42 mln sgd or 0.45 sgd per share in cash from China Everbright Group.	    Tianjin Capital rose 0.13 to 1.34, Guangzhou Shipping added 0.03 to 0.73 and Jingwei Textile gained 0.05 to 1.49. 

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