Military Action Cuts HK Stocks by Over 3 Percent

Military Action Cuts HK Stocks by Over 3 Percent

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Hong Kong stocks fell sharply Monday following the overnight U.S. military strikes on Afghanistan in response to the September 11 terrorist attacks on New York and Washington.

At the close, the benchmark Hang Seng Index was down 309.55 points, or 3.01 percent, at 9,967.83, having moved between 9,904. 93 and 10,153.56.

Turnover decreased from Friday's 7.511 billion HK dollars (963 million U.S. dollars) to 6.776 billion HK dollars (869 million U.S. dollars).

HSBC, Europe's largest bank, shed 1.8 percent to 83 HK dollars, outperformed by its subsidiary Hang Seng Bank, which closed 0.6 percent higher at 84.25 HK dollars after a morning dip.

Properties plunged 4.43 percent as a group with Cheung Kong Holdings Ltd., the city's largest developer by market value, losing 3.5 percent to 61.25 HK dollars. Sun Hung Kai Properties Ltd., the second-largest developer of Hong Kong, dived 5.7 percent to 47.60 HK dollars.

Major telecoms headed down, except Pacific Century CyberWorks, which strengthened 2.4 percent to end at 2.125 HK dollars as falling interest rates were seen lowering its financial costs.

China Mobile, China's largest mobile phone company, tumbled 6.8 percent to 23.80 HK dollars as profit takers cashed in. Still, the No. 2 heavyweight has gained 10.9 percent since the September 11 events, outperforming the HSI.

Rival China Unicom Ltd., holder of the core operations of China 's No. 2 phone company, held up better falling 2.3 percent at 8.60 HK dollars.

Hutchison Whampoa Ltd., which invests heavily in third- generation mobile phone services worldwide, fell 3.7 percent to 59 HK dollars.

Chinese mainland-related stocks ended lower with the H-share index dipping 0.18 percent and the red-chip index plunging 4.82 percent.

The tech-heavy Growth Enterprise Index lost 1.88 points to end at 170.34 points.