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HK stocks sharply lower

in feeble trade

HONG KONG: Hong Kong stocks closed Thursday sharply lower in wan trading, sapped by renewed weakness of U.S. stocks and bonds overnight, brokers said.

The blue-chip Hang Seng Index plunge 145.31 points, or 1.33 percent, to 10,753.38. Turnover rose slightly to HK$3.35 billion from Wednesday's adjusted HK$3.13 billion.

"It's more a matter of lack of participation interest than any great desire to dump shares that's pulled the market down," said Lennon Chan of Tai Fook Securities. "Most major players are apparently holding short positions on expiring April index futures, making any upturn unlikely in the near term."

The broader All Ordinaries Index fell 60.14 to 5,161.64.

Players agreed that with the U.S. Federal Reserve unlikely to either cut or hike rates next month, the market was devoid of trading incentives and the bear trend, if it continued, could bring about a test of support around 10,500.

April futures, which will expire on Monday, slid 125 to 10,775 on preliminary volume of 14,058 lots. May dropped 135 to 10,765, on volume of 9,040 lots.

Brokers noted that major banks led the downturn as they again came under pressure on worries over the current mortgage rate war.

HSBC plunged HK$1.50 to HK$114.50, as did its Hang Seng Bank unit to HK$75.75. Bank of East Asia dropped 50 cents to HK$25.50.

Key blue chips were broadly lower. Cheung Kong eased 50 cents to HK$53.75, its Hutchison associate lost 30 cents to HK$47.20, Sun Hung Kai Properties plummeted HK$1.75 to HK$71.75 and HK Telecom tumbled 30 cents to HK$14.65.-Reuter