Financial stocks tracked declines in the U.S. overnight while concerns about the weak local economy weighed on the property sector, sending Hong Kong shares lower Friday.
The Hang Seng Index fell 324.19 points, or 2.5 percent, to 12, 699.17, near its intraday low of 12,669.57. It fell 6.3 percent, or 855 points, during the week.
Turnover rose to 39.76 billion HK dollars (5.13 billion U.S. dollars from 35.48 billion HK dollars on Thursday.
Industrial and Commercial Bank of China fell 2.7 percent to 3. 26 HK dollars, Bank of Communications slid 4.2 percent to 4.80 HK dollars and Ping An Insurance dropped 2.4 percent to 3.26 HK dollars.
Large financial stocks like Citigroup and Bank of America tumbled overnight in the U.S., on continued fears that the U.S. government's efforts to rescue the financial system may be insufficient. The sell-off pushed the Dow Jones Industrial Average to fall 1.2 percent to 7,465.95, the lowest closing level in roughly six years.
Hong Kong developers remained weak on expectations property prices would fall. Sun Hung Kai Properties shed 3.2 percent to 60. 20 HK dollars, New World Development tumbled 4.4 percent to 7.16 HK dollars and Sino Land lost 4.2 percent to 6.00 HK dollars.
Consumer goods exporter Li & Fung was the only blue chip that rose, ending 1.3 percent higher at 16.10 HK dollars. Bank of America-Merrill Lynch upgraded the trading firm to buy from underperform, and raised its target price on the stock by 48 percent to 20.44 HK dollars. (1 U.S. dollar = 7.7460 HK dollars)
(Xinhua News Agency February 20, 2009)
