Hong Kong shares close morning lower led by HSBC; telecoms/hi-techs limit fall

HONG KONG (AFX-ASIA) - Share prices closed the morning lower led by HSBC, but the downward pressure was in part offset by gains in several telecom and hi-tech stocks after NASDAQ's rise overnight, dealers said.	    They said HSBC was lower after its losses in London trade overnight, on speculation that the bank is considering a share placement to finance new acquisitions.	    H-shares corrected downward from their recent gains, but red chips were slightly higher on laggard buying, they said.	    The Hang Seng Index closed the morning down 127.51 points at 13,686.73, off a high of 13,844.36 and a low of 13,646.22, on trade of 5.38 bln hkd.	    The Hang Seng May contract last traded at 13,655.	    The Hang Seng China Enterprises Index was down 13.16 points at 474.28, and  the CAC Index gained 4.94 points to 1,259.20.	    The Tracker Fund fell 0.10 to 13.70, and the GEM Index was up 4.60 points at 277.41, on trade of 180.88 mln hkd.	    Louis Wong, an analyst with Philip Securities, said the Hang Seng Index was lower on profit-taking after yesterday's gains, with the falls in HSBC also weighing the market down.	    He said HSBC was lower this morning, matching its weak performance in London last night, on speculation that it will initiate a share placement to finance new acquisitions.	    The financial sub-index was down 627.85 points at 20,616.42.   	    HSBC dropped 3.75 hkd to 97.25, Bank of East Asia was unchanged at 18.10, and Hang Seng Bank was steady at 90.75.	    Outperforming the market were several hi-tech and telecom stocks, which rose in tandem with the positive performance on NASDAQ overnight, Wong said.	    "Losses on the Hang Seng Index were in part limited by the rise in certain telecom and hi-tech stocks," he said.	    Among these stocks, PCCW was up 0.10 at 2.85 on bargain hunting, China Mobile gained 0.30 to 41.60, and Sunday rose 0.005 to 0.50.	    Legend added 0.20 to 6.85, ASM Pacific grew 0.60 to 15.00, and Great Wall Technology rose 0.078 to 2.325.	    However, Hutchison was down 0.5 at 86.00, and China Unicom fell 0.25 to  11.85.	    Among properties, Cheung Kong was down 0.25 at 89.0, Henderson Land was 0.30 lower at 35.70, and Sun Hung Kai Properties gained 0.25 to 73.50.	    H-shares came under profit-taking after recent gains while in contrast, red chips turned higher on laggard chasing, according to Wong.	    "H-shares have been strong in the first quarter, and they should consolidate at the current levels ... For red-chips, investors were positive about their ongoing restructuring plan, which may include the issue of A-shares," he said.	    Among the H-shares, Sinopec Corp was down 0.035 at 1.33, China Eastern  dropped 0.03 to 1.19, and Beida Jade Bird fell 0.075 to 2.20.	    For red-chips, China Resources Logic gained 0.04 to 0.82, Stone Electronic was up 0.08 at 1.18, and Founder rose 0.075 to 2.20.	    On the GEM board, tom.com was up 0.15 at 2.275, hongkong.com rose 0.02 to 0.375, and Sunevision added 0.085 to 2.025. 

Related stock : (NIL)