Sun, Aug 06, 2006 - Page 10 News List

Asian bourses close the week mixed

AFP , HONG KONG

"The market's energy seems to be getting stronger although it's too early to say that the index has settled firmly at 1,300 points," said Hana Securities analyst Cho Yong-hyun, adding the market is expected to post gains next week.

Samsung Electronics added 5,000 won to 615,000.

Hong Kong

Share prices closed 0.94 percent lower as investors locked in profits in property and bank stocks in late trade.

Dealers said investors were cautious about key US jobs data due out later Friday and the Federal Reserve's interest rate decision next week.

The Hang Seng index closed down 160.62 points at 16,887.80. Turnover was HK$24.7 billion (US$3.2 billion).

Dealers said trading next week would be guided by the US Fed's rate move and its comments on the economic outlook, as well as corporate results from companies such as Cathay Pacific and Standard Chartered.

"Investors are becoming more worried about the US Fed's interest rate decision. Many believe interest rates will rise again next week," said Francis Lun, general manager at Fulbright Securities.

Shanghai

Share prices closed 1.94 percent lower on increasing liquidity concerns, with metal stocks and automakers under heavy selling pressure.

Dealers said those concerns stem from Initial Public Offerings (IPOs) and the disposal of state-owned, non-tradable stocks which are seen as positives in the longer-term but short-term are putting considerable pressure on funds.

This has put investors on the defensive for several weeks.

The Shanghai A-share Index tumbled 32.60 points to 1,650.23 on turnover of 14.34 billion yuan (US$1.79 billion) and the Shenzhen A-share Index was down 11.89 points or 2.87 percent at 402.36 on turnover of 7.77 billion yuan.

The Shanghai Composite Index, which covers A and B-shares, fell 30.91 points or 1.93 percent at 1,570.15 on turnover of 14.40 billion yuan.

"The market saw a small rebound in the morning, but the momentum was unable to be sustained due to increasing caution and a lack of follow-through buying," said Wu Dazhong, an analyst at Chinalion Securities.

Analysts said more upcoming IPO (Initial Public Offering) subscriptions will attract a great deal of money away from the secondary market.

Metal issues were hit after Nymex gold futures ended weaker on a fall in oil prices.

Zhongjin Gold fell 1.88 yuan to 17.09.

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