Commodities hurt HK shares, Bank of China soars
(Reuters)
Updated: 2006-06-01 18:44
Hong Kong stocks slid 1.34 percent on Thursday as falling commodities prices
dragged down shares like Jiangxi Copper Co. Ltd., sending the gauge of Hong
Kong-listed mainland shares to its lowest close in more than two months.
But the shaky market did not dampen the trading debut of Bank of China as had
been expected. China's second-largest bank, which raised US$9.7 billion in the
world's largest initial public offering in six years and is Hong Kong's largest
ever, accounted for 37 percent of the day's near-record turnover of HK$54
billion (US$6.9 billion).
The benchmark Hang Seng index ended down 212.62 points at 15,645.27. The
China Enterprises index of H-shares slid 2.69 percent to 6,486.47, the lowest
close since March 22.
"The market will trend lower without further fund inflows," said Alex Tang,
head of research at Core Pacific-Yamaichi International. "Inflation pressure,
which could lead to higher rates in the months to come, and slowing economic
growth in the U.S. are making investors concerned."
Analysts expect the market to consolidate near the 15,500 level.
Among the resource shares that took hits, Hunan Nonferrous Metals Corp Ltd.
sank 9.2 percent to HK$2.70 and Zijin Mining Group Co. Ltd. slumped 6 percent to
HK$3.95.
Jiangxi Copper Co. Ltd. slid 6.8 percent to HK$6.85.
Oil shares also suffered as PetroChina Co. Ltd. shed 3 percent to HK$8.10 and
Sinopec Corp. fell 3.8 percent to HK$4.425.
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