tbogg

Hong Kong stocks end 0.38% lower after moving higher

Hong Kong stocks ended 0.38 percent lower at 22,326.64 on Tuesday after moving around the previous market close of 22,411.52, with analysts warning against slightly increasing downside risks in the near term.
The benchmark Hang Seng Index joined regional markets to open at 22,378.23, down 33.29 points, or 0.15 percent, after metal mining giant Alcoa reported slightly disappointing quarterly results overnight to usher in the earnings season.
The blue chip index widened its losses in early morning trading, but rebounded back to the day’s high of 22,476.12 on the strength of the mainland market before closing down 0.38 percent. Turnover rose to total 81.22 billion HK dollars (10.41 billion U.S. dollars) from Monday’s 74.18 billion HK dollars (9.51 billion U.S. dollars).
Analysts tipped slightly increasing downside risks for the HangSeng Index in the near term, with resistance at 22,600 or slightly higher and support at 22,000. The Hang Seng Index futures were trading at a discount of 86 points at 22,241.
Three of the four sub-indexes closed lower on Tuesday, with the finance category down 1.19 percent, utilities down 0.53 percent and properties down 0.22 percent. The commerce and industry sub-index was the only gainer, moving up 0.72 percent.
Market heavyweight HSBC moved down 0.75 HK dollars, or 0.81 percent, to close at 91.65 HK dollars. China Mobile, the leading mobile carrier on the Chinese mainland, surged 2.4 percent to 76. 65 HK dollars on improving hopes in its 3G operation.
The mainland banks were lower, dragged by expectations that some of the banking giants would have to raise more money from the market this year. China Construction Bank shed 2.13 percent, ICBC shed 2.23 percent and Bank of China, 2.36 percent.
Lower oil prices pushed the share price of offshore oil producer CNOOC 0.45 percent lower and that of business conglomerate 0.59 percent lower. Sinopec, the giant operating mainly in refining, gained 0.89 percent at 6.81 HK dollars.
Cheung Kong, the business conglomerate headed by Hong Kong’s richest man Li Ka-shing, ended 0.2 percent lower at 101.6 HK dollars. Hutchison Whampoa, controlled by Cheung Kong, surged 3.17percent to close at 58.6 HK dollars on a rating upgrade.
The shipping chips continued to gain on improving trade outlook, with COSCO Pacific surging 0.42 HK dollars, or 3.36 percent, at 12. 9 HK dollars. (7.8 HK dollars = 1 U.S. dollar)