Thursday May 8, 06:08 AM
Hong Kong shares end morning lower as record crude oil price hits Asian markets
HONG KONG (Thomson Financial) - Hong Kong shares ended a volatile morning session lower on Thursday after a fresh record high in global crude oil prices near the $124 level hit market sentiment across Asia, sparking fears of worsening inflation
and a slowing global economy.
'The local market reflects weakness in (bourses across) the region. Investors are generally worried about the health of the global economy and rising inflation after crude prices hit fresh records,' said Conita Hung, research head at Delta Asia Securities.
'But the correction in the market is also due to profit-taking. Investors are taking every opportunity to cash in,' she said.
The Hang Seng index finished the session down 185.31 points or 0.7 percent at 25,424.90.
Turnover was HK$44.1 billion.
Initial public offerings by mainland companies which reportedly drew lukewarm response from retail investors also weighed on sentiment. Fashion accessories makers Artini China Co Ltd and E-Land Fashion China Holdings are scheduled to list in Hong Kong this month.
This follows Maoye Internationals' lacklusture debut earlier this week and indicates that investors are still cautious about the market's performance in the near term.
($1 =HK$7.8)
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