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HK shares weaker

in listless trade

HONG KONG: Hong Kong stocks closed Friday modestly weaker in thin, listless trading, weighed down by caution ahead of the weekend and the U.S. consumer price index due out later in the day, brokers said.

The blue-chip Hang Seng Index ended down 42.77 points at 10,849.80, against a day low of 10,805.93. Turnover dipped to HK$4.29 billion from Thursday's adjusted HK$4.40 billion.

"Sentiment is held back by wariness towards the U.S. CPI figure, triggering some profit taking against recently buoyant property stocks, which also happen to be rates-sensitive," said Lennon Chan, executive director at Tai Fook Securities.

The broader All Ordinaries Index eased 18.16 to 5,205.60.

Players said the market was adrift after falling sharply on Wall Street's recent volatility caused by inflation fears, but noted that 10,800 still carried a certain degree of support.

Major index stocks were little changed. HSBC gained 50 cents to HK$115, HK Telecom dipped five cents to HK$14.50 and Hutchison edged down 10 cents to HK$48.60.

Among key property counters, Cheung Kong tumbled HK$1.25 to HK$55, as did Sun Hung Kai Properties to HK$72.50. Henderson Land dipped 25 cents to HK$55 and New World slid 40 cents to HK$34.50.

Cathay Pacific fell 25 cents to HK$12.70 on continued fears of keen competition from mainland-owned China National Aviation Corp, which is due to receive a local operating licence. Swire, Cathay's parent, dropped another HK$1.50 to HK$63.25 after plunging HK$2 on Thursday.

Casual wear group Giordano lost 10 cents to HK$6.90 after shedding 40 cents on Thursday on rumours that more of its China outlets had been closed down, brokers said. Samuel Lau of China Everbright Securities noted vague talk that the group may have some kind of tax problem on the mainland. Company officials were not available for comment.

Broadcaster TVB bucked the overall soft trend and jumped 85 cents to HK$29.05 on overseas buying in anticipation of solid growth in advertising revenue as the economy improved, analysts said.

Construction group Wang On plummeted 29 cents to HK$1.16 on talk of a placement at a big discount, brokers said.

April index futures eased 25 to 10,835 on preliminary volume of 12,534 lots.-Reuter