Hong Kong shares -- 2 (further consolidation expected: analyst)

At 11:32 am, the Hang Seng Index was down 46.29 points at 13,502.66 on turnover of 3.91 bln hkd, while the Hang Seng April contract last traded at 13,500 points.	    The GEM index was up 3.84 points at 275.31 on turnover of 205.14 mln shares.	    Johnson Hui, vice president of Bank of China International Securities, said he expects the local market will continue to consolidate in the short term.	    "Investors are watching closely how U.S. equity markets will go after the latest strong rebound. Few can be sure when the U.S. markets will stabilise," Hui said.	    "I expect the Hang Seng Index will move between 12,800 points and 13,600 points in the short run, while expectations of further rate cuts in the U.S. will lend some support," Hui said.	    Hui said he suggests investors consider reducing their blue chip holdings at the moment.	    Among property stocks, Cheung Kong fell 0.50 to 87.00 and New World Development shed 0.05 to 9.90, while Sun Hung Kai Properties rose 0.25 to 75.25 and Henderson Land gained 0.10 to 37.50.	    Wharf added 0.45 to 19.30 on laggard buying, dealers said.	    Blue chip telecom stocks also faced profit-taking selling this morning, dealers said.	    China Mobile fell 0.60 to 38.30 after the company announced it would cut international IP call charges by up to 50 pct.	    Hutchison Whampoa shed 1.25 to 88.50 and Pacific Century CyberWorks lost 0.025 to 2.725.	    SmarTone fell 0.15 to 9.30 after its unit SmarTone Broadband laid off 58 employees yesterday.	    Legend was unchanged at 5.90.	    Hui said gains on NASDAQ overnight prompted investors to move their funds from the main board to the seriously battered GEM listings.	    "I remain concerned about their fundamentals. I prefer to believe the gains among the GEM listings are a technical rebound," Hui said.	    Tom.com rose 0.20 to 2.30, Sunevision gained 0.095 to 2.075 and hongkong.com added 0.02 to 0.39.	    CNOOC extended losses, down 0.30 at 6.90, on oil price concerns, while PetroChina rose 0.04 to 1.50.	    Among other China related plays, China Resources rose 0.25 to 11.35, Shanghai Industrial gained 0.05 to 12.75 and CNPC (Hong Kong) added 0.04 to 0.74. 

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