Posted on 08/17/2007 2:36:10 AM PDT by TigerLikesRooster
HK shares sink in worst weekly loss since Sept. 01 (Updates to close)
By Rita Chang
HONG KONG, Aug 17 (Reuters) - Hong Kong shares pared earlier steep losses in volatile trade on Friday after heavy selling engulfed the market with investors looking to raise cash amid margin calls while stop-loss orders forced others to sell.
Hong Kong-listed China plays sank 3.2 percent, at one point plunging nearly 10 percent, while blue chips ended down 1.4 percent below their 250-day moving average.
Fund managers shed more of their holdings in anticipation of growing client redemptions, as investors continue to be stalked by fears that the U.S. subprime loan mess could spiral into a broader financial crunch and hit economic growth.
Mainboard turnover was the third-highest ever at HK$115.9 billion (US$14.9 billion). ADVERTISEMENT
Selling was marked by panic for much of the day, as a rebound on the open was short-lived and a 5 percent plunge by Japan's Nikkei in the afternoon rattled already frayed nerves.
"The market is in deep fear," said Steve Cheng, associate director at Shenyin Wanguo.
At the height of the sell-off, "most counters didn't have a single bid -- that's how catastrophic this was", Cheng said.
But by the close, a rebound in European equities, bargain hunting and short-covering had narrowed the losses.
Though a rebound should be near amid oversold conditions, selling may continue as investors shun risk.
"We can't conclude that we've stabilised," said Linus Yip, strategist at First Shanghai Securities. "The crisis is not over yet."
At their intraday low, blue chips tanked more than 6 percent and entered negative territory for the year.
"This is not about fundamentals -- people are being forced to sell," said Tat Auyeung, fund manager at APEX Capital Management. "A lot of companies at this level look great."
The benchmark Hang Seng Index lost 285.26 points to end at 20,387.13, a 2-1/2-month closing low, to yield a 6.5 percent loss for the week, in its worst weekly decline since Sept. 2001. The index is now up 2 percent, year to date.
The China Enterprises index of H shares , or Hong Kong-listed shares in mainland companies, fell 359.12 points to 11,002.52. The index fell 10.4 percent for the week, its worst weekly loss since June 2004, but is up 6.4 percent for the year.
China Mobile managed to eke out a 0.2 percent gain to HK$81, supported by strong quarterly earnings, which spurred a spate of stock rating upgrades.
(For details, click on [ID:nHKG79623]).
Among large-cap losers, resource stocks were among the worst hit. Jiangxi Copper , China's No.1 copper producer, plunged 6.8 percent to HK$11.82, tracking tumbling copper prices on global exchanges.
Aluminum Corp. of China dived 10 percent to HK$10.78.
HSBC Holdings plc , the most traded stock after China Life , hit lows not seen since April 2006 before ending the day down 0.2 percent at HK$135.80.
China Life sank 3.5 percent to HK$27.60.
Newcomer mainland property investor Franshion Properties (China) Ltd. , ended at HK$2.18, or 7.2 percent below its offering price of HK$2.35. The spin-off of China's state-run Sinochem Corp. raised US$425 million in an initial public offering. (US$1=HK$7.8)
Yeah, I heard Limbaugh talking with glee about this correction. He sounded so happy the market was falling.
“This is not about fundamentals — people are being forced to sell,” said Tat Auyeung, fund manager at APEX Capital Management. “A lot of companies at this level look great.”
raybbr wrote: “Yeah, I heard Limbaugh talking with glee about this correction. He sounded so happy the market was falling.”
This is an excellent buy opportunity, and I’m happy, too (even though I’m in the red on a lot of stocks). What did you think, the markets would go up forever without a correction? Check out the top quote. Personally, I’m not the slightest bit concerned about shopping in the clearance bin.
I don't have any money to buy in this wonderful time of loss. My 401K is hurting and Limbaugh is cheering.
raybbr wrote: “My 401K is hurting and Limbaugh is cheering.”
Is it really hurting? My 401K is still in the black for the year, though not by much. So what? You shouldn’t be invested in a 401K for the short term. That’s a long term investment, so unless you plan to retire tomorrow, ride it out bud.
It’s still up too. But. To hear the super-capitalists of the world it’s a great time when the market falls. Those with money are never hurt by these things. It’s their attitude that bothers me.
raybbr wrote: “It’s their attitude that bothers me.”
In my opinion, they have every right to be happy about it. A bunch of people foolishly invested in high risk, sub prime mortgages. They loaned money to people who should have never qualified for credit in the first place. Now, those lenders are going to be taught a lesson, and they will likely invest their money (what’s left of it) more wisely in the future. Unproductive investments are eliminated, productive ones are encouraged. That’s a good thing.
As for your own 401K, it’s all paper until you cash out. Then you lock in your real gains or losses. Some people feel they can time the market so they can get out and back in at the right time to maximize profit. I’m not that smart. I can’t predict the market, so I let it ride. History is on my side. Although I might lose ground temporarily (NO stock is 100% safe), I’m betting on the long term. For all I know, the market could make a major upswing today. It really doesn’t matter so long as I’m in it for the long term.
Do you really believe that? I don't. I believe there will be a finacial bailout if not at the federal level then at some states. What they did was not illegal so they won't go to prison. Our tax dollars will be used to bail them out (read; buy votes).
When it comes to our society today it's all about making a buck today. I am almost sorry I had children. With the politicos encouraging an invasion of uskilled labor, the rape of our tax money for private investment benefits, the lack of honesty that is pervasive in elected officials and the incredible apathy of the American people it's sad.
You have received excellent advice from CitizenUSA... will you take it?
LLS
Captitalism has always included risk... and it is Socialism to pay for others legal/financial mistakes... Hands off... do not reward bad business practices... and this was bad for business in the long run. Let the market forces level things. The Markets will rebound again and those that sit tight will come out fine. Those that panic now, risk all.
LLS
Some people make it sound like it is a law of physics that you can put your money under a rock and the Money Fairly will guarantee that when you come back later it will be 10% or more higher
Even some Conservatives have been brainwashed by the dim and media march to socialism. If we had no risk, there were be no Capitalism... and no America as we know it.
LLS
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