Hong Kong shares close morning lower ahead of U.S. GDP data/Labour Day holiday

HONG KONG (AFX-ASIA) - Share prices closed the morning lower in thin trade as sentiment turned cautious ahead of U.S. first-quarter GDP data due tonight and the upcoming long Labour Day weekend, dealers said.	    They said with the blue chip sector staying relatively dull, investors moved their funds to H shares on their positive economic fundamentals, adding the market has also expected fund inflows from China to increase next week as the country celebrates a 7-day-long Labour Day holiday.	    The Hang Seng Index was down 104.67 points at 13,188.44, off a high of 13,282.34 and a low of 13,125.36, on turnover of 3.74 bln hkd.	    The Hang Seng May contract last traded at 13,147 points.	    The Hang Seng China Enterprises index was up 6.95 points at 466.68, while the CAC index was down 8.94 points at 1,164.83.	    TraHK was down 0.15 hkd at 13.20 on volume of 2.25 mln units.	    The GEM index was down 0.55 points at 263.24 on turnover of 62.20 mln hkd. 	    Johnny Mak, associate director with China Everbright Securities, said many investors remained on the sidelines this morning.	    "Investors are waiting for the U.S. GDP data due tonight, although few expect the U.S. will report good economic growth for the first quarter. The data are expected to give us a clear picture about the interest rate reduction cycle," Mak said.	    Mak said investors were reluctant to enter the market ahead of the long weekend, fearing that negative news may emerge duirng the period.	    Dealers said NASDAQ's losses dragged down local telecom stocks with China Mobile leading the declines.	    China Mobile fell 0.80 hkd to 37.10, while China Unicom gained 0.35 to 10.85 after a report that its parent company has secured approval to issue A-shares in China.	    Hutchison Whampoa fell 0.25 to 83.50 and Pacific Century CyberWorks shed 0.05 to 2.625.	    Mak said HSBC held up well to prevent the broader market from falling further.	    HSBC rose 0.25 to 98.00, while Hang Seng Bank fell 1.50 to 90.75.	    Bank of East Asia lost 0.15 to 17.40 and Dao Heng Bank shed 0.25 to 57.50.	    Among property stocks, Cheung Kong was unchanged at 86.25, while Sun Hung Kai Properties fell 1.25 to 71.75, Henderson Land shed 0.50 to 35.30 and New World Development fell 0.15 to 9.65.	    MTRC was unchanged at 13.45 after a report saying the government will sell more MTRC shares it holds in January to February next year.	    Li & Fung rose 0.80 to 14.80 on bargain-hunting by funds.	    Dealers said buying in H shares resumed as funds switched to this market as fears of a large-scale float by the Chinese government of state-owned shares faded.	    They said the market has high hopes that funds will be moved to Hong Kong from China next week during the week-long Labour Day holiday on the mainland.	    PetroChina rose 0.07 to 1.66 hkd and Huaneng Power gained 0.125 to 4.45.	    Zhenhai Refining added 0.01 to 1.37, while Qingling Motors was unchanged at 1.69.	    On the GEM board, tom.com fell 0.02 to 1.97 and Sunevision shed 0.04 to 1.86.	    Convenience Retail Asia rose 0.16 to 1.66 on its Q1 results and its China expansion plan.	    Elec & Eltek gained 0.05 to 0.76 after it made an conditional offer to acquire a stake in its Singapore-listed unit Elec Eltek International Co Ltd.	    Pearl Oriental Cyberforce added 0.002 to 0.025 after news the company is still in talks with several parties on the sale of its property and hotel portfolio.    

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