HK stocks dive over 1,100 points amid panic selling

(Xinhua)
Updated: 2008-10-24 19:16

HONG KONG -- Hong Kong stocks nose-dived 1,142.11 points, or 8.3 percent, to close at 12,618.38 as investors dumped shares widely amid panic selling triggered by stock market meltdowns in Japan and the Republic of Korea.

A man is silhouetted in front of a display showing the Hang Seng Index in Hong Kong October 24, 2008. Hong Kong shares slid 8.3 percent to a four-year low on Friday, with global lender HSBC posting its biggest one-day loss since the Asian financial crisis, on a gloomy outlook for corporate earnings. [Agencies]

Friday's closing, the lowest in four years, also capped the Hong Kong stock market's losses this week to 1,935.83 points, or 13.3 percent.

The benchmark Hang Seng Index tracked market downfall in Asia stock markets to open 281.86 points, or 2.05 percent, lower at the day's highest 13,478.63 and extended its losses to close at the day's lowest 12,618.38, off 1,142.11 points, or 8.3 percent.

Scared investors dumped shares of blue-chip companies widely in the afternoon trading as stock markets in Japan and South Korea both tumbled about 10 percent at closing.

Turnover remained modest, however, at 56.14 billion HK dollars (about US$7.2 billion), compared with Thursday's 56.46 billion HK dollars (US$7.24 billion).

Among 42 components of the benchmark Hang Seng Index, losers greatly outnumbered advancers 42 to 2.

Market heavyweight HSBC, which accounts for the largest weighting of the index, dived 12.53 percent to 88 HK dollars, pulling down the index by 321.08 points alone.

The free fall of HSBC sent the stock to its lowest level since the outbreak of severe acute respiratory syndrome (SARS) in 2003 and made none of the Hang Seng Index components stood above 100 HK dollars.

Another market heavyweight China Mobile, or the country's largest mobile phone operator, continued to fall 6.5 percent to 57. 5 HK dollars, downing the index by 104.91 points.

The Hong Kong Exchanges and Clearing Ltd., the market's sole operator, slumped 7.1 percent to 72 HK dollars.

Citic Pacific, a Hong Kong-listed affiliate of China's Citic Group and also a Hang Seng Index component, outshone the market by recovering 1.2 percent to 5.06 HK dollars after the parent company pledged support following its disclosure of potentially huge forex losses of about 2 billion US dollars. Citic Pacific had plunged more than 66 percent in this week's early trading.

Another index component, athletic footwear maker Yue Yuen Industry, also outperformed the entire market by adding 1.19 percent to 17 HK dollars.

Hong Kong's housing companies were all weaker. Sun Hung Kai Properties, Hong Kong's largest house developer, dropped 2.77 percent to 61.55 HK dollars. Cheung Kong lost 5.42 percent to 69 HK dollars. Henderson Land lost 3.7 percent to 26 HK dollars. New World Development fell 6.25 percent to 6 HK dollars. Sino Land slumped 8.06 percent to 6.62 HK dollars. Hang Lung Property moved down 5 percent to 15.2 HK dollars.

The China Enterprise Index, or H-shares, a barometer composed of companies registered in the Chinese mainland but listed in Hong Kong, tumbled 600.44 points, or 9.38 percent, to 5,802.71.

China's energy companies were sharply lower as fears of global recession outweighed the Organization of Petroleum Exporting Countries (OPEC)'s plan to cut the daily output by a million barrels. PetroChina, the country's largest oil producer, dived 11. 03 percent to 5 HK dollars. CNOOC, China's largest offshore oil company, plunged 8.96 percent to 4.88 HK dollars. Sinopec, Asia's largest oil refiner, plummeted 10.71 percent to 4.5 HK dollars.

Banking and insurers in China were under huge selling pressures. ICBC, China's largest lender, slumped 7.35 percent to 3.15 HK dollars. Bank of China, the country's second largest bank, tumbled 9.46 percent to 2.01 HK dollars. China Construction Bank plummeted 8.49 percent to 2.91 HK dollars. China Life, the country largest insurance company, dived 9.35 percent to 19.4 HK dollars. Ping An fell 8.77 percent to 28.1 HK dollars. Bank of Communications moved down 10.67 percent to 4.02 HK dollars.