Hong Kong shares close lower on profit-taking in telecoms/Wall Street

HONG KONG (AFX-ASIA) - Share prices closed lower on profit-taking mainly in telecom stocks following the losses on Wall Street and NASDAQ overnight, dealers said.	    They said HSBC continued to fall on concerns the bank would ask shareholders to back its share placement proposal.	    The Hang Seng Index closed down 327.15 points or 2.38 pct at 13,390.99, off a high of 13,599.47 and a low of 13,319.39, on turnover of 8.66 bln hkd.	    The Hang Seng May contract last traded at 13,328 points.	    The Hang Seng China Enterprises Index was down 1.07 points at 472.47, and the CAC Index finished down 13.88 points at 1,232.67.	    The Tracker Fund fell 0.25 to 13.45, and the GEM Index was down 4.02 points at 269.39 on turnover of 245.73 mln hkd.	    Steven Leung, associate director of Vickers Ballas Securities, said the Hang Seng Index mimicked the negative performance on Wall Street triggered by the higher-than-expected U.S. weekly jobless claims data.	    "Investors were nervous and inactive today ... they were waiting for the release of some U.S. job data tonight (April nonfarm payroll data)," he said.	    Leung said telecom stocks led the initial decline.	    "Telecom stocks also followed the decline on NASDAQ overnight," he said.	    China Mobile fell 2.20 hkd to 39.60, Pacific Century CyberWorks lost 0.175 to 2.825 and Hutchison shed 1.50 to 84.75.	    Sunday fell 0.02 to 0.49 and SmarTone was down 0.40 at 10.20.  	    Leung said HSBC remained unattractive after the stock extended losses in London trade last night on concerns the bank would initiate a share placement to finance new acquisitions. 	    HSBC fell 1.50 to 95.50, Hang Seng Bank lost 1.25 to 89.25 and Bank of East Asia shed 0.20 to 18.00	    HKCB Bank fell 0.175 to 3.325, with its acquisition plans failing to boost its share price, dealers said.	    Within the property sector, Cheung Kong fell 1.00 to 88.50, Sun Hung Kai Properties lost 1.75 to 72.25, Henderson Land lost 0.50 to 35.00, and New World Development lost 0.10 to 9.75.	    Red-chips and H-shares were mixed in volatile trade, with their upturn  since the end of their earnings season last month having been significantly weakened, dealers said.	    Beijing Capital International Airport fell 0.065 to 1.96, Huaneng Power  lost 0.10 to 4.325 and Yanzhou Coal gained 0.025 to 3.45, while Guangzhou Shipping rose 0.08 to 1.05.	    China Resources rose 0.25 to 11.95, Shanghai Industrial fell 0.10 to 13.55, Legend fell 0.40 to 6.30 and Founder shed 0.10 to 2.05.	    On the GEM board, tom.com fell 0.125 to 2.10, hongkong.com dropped 0.005 to 0.36 and Sunevision was 0.065 lower at 1.96. 

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