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HK's main stock index ends flat
AP - Friday, December 12
HONG KONG - Hong Kong's benchmark stock index ended flat Thursday as China's dismal economic data offset Wall Street's overnight gains.
The blue chip Hang Seng index added 36.16 points, or 0.2 percent, to 15,613.9, after flitting in and out of positive territory during the session. The index jumped 5.6 percent Wednesday.
Overnight gains on Wall Street where the Dow Jones industrial average rose 0.8 percent did little to help sentiment.
Analysts said they expected a correction to kick in soon as investors were too optimistic about the short-term outlook.
"The gains in the stock market have been too fast. The market has ignored several pieces of negative data," said Dariusz Kowalczyk, chief investment strategist for CFC Seymour in Hong Kong. "We have priced in quite a lot of good news already."
Investors had largely ignored China's export and inflation figures, announced Wednesday and Thursday respectively, which both suggested slowing demand in China and abroad, Kowalczyk said,
"Clearly there should be some concerns over the impact of China's slowdown on Hong Kong."
Heavyweight HSBC shed 0.5 percent to 87.25 Hong Kong dollars while China Mobile added 0.1 percent to HK$82.35.
China Southern Airlines surged 43 percent to HK$1.33 and China Eastern Airlines soared 41.3 percent to HK$1.06 after the two struggling state-owned carriers said they each received a capital injection from government.
Property stocks were higher on expectations that U.S. Federal Reserve would slash interest rates next week. Sun Hung Kai Property rose 5.5 percent to HK$66.50. Cheung Kong (Holdings) Ltd. added 3.7 percent while Sino Land jumped 7 percent.
China's top lender, ICBC, lost 0.2 percent to HK$4.45 and China Construction Bank was unchanged at HK$4.88.
___
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Stock Exchange of Hong Kong: http://www.hkex.com.hk
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