Hong Kong shares close down 1.1 % in worst loss in a week

Hong Kong shares close down 1.1 % in worst loss in a week
Business & Markets 2013
Written by Reuters
Tuesday, 23 April 2013 16:10


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HONG KONG (April 23): Hong Kong shares posted their worst daily loss in a week on Tuesday, led by growth-sensitive sectors after a weak preliminary survey of China manufacturing activity in April stoked fears of sluggish growth in the second quarter.

The Hang Seng Index ended down 1.1 percent at 21,806.6. The China Enterprises Index of the top Chinese listings in Hong Kong shed 1.6 percent. This was their respective worst day since April 15.

The CSI300 of the leading Shanghai and Shenzhen A-share listings ended down 3.2 percent, while the Shanghai Composite Index skidded 2.6 percent to 2,184.5. For both, Tuesday marked their worst daily loss since March 28.

HIGHLIGHTS:

* Growth-sensitive counters extended losses after China's flash HSBC Purchasing Managers' Index for April fell to 50.5 from the final March 51.6 reading. China's industry ministry said separately that companies had no strong desire to invest given weak demand and overcapacity.

* Anhui Conch Cement tumbled 3.3 percent after China's largest cement producer said its 2013 first-quarter net profit declined 22 percent from a year earlier.

* Anton Oil Services was an outperformer, surging 12.5 percent to a record high as investors cheered its robust first quarter operational update and its plans for the second quarter, which includes starting shale gas development and expanding in the Middle East and South America.

* Great Wall Motor ended a choppy day up 0.8 percent to another record closing high. In a statement to the Hong Kong Exchange after markets closed on Monday, the company denied April 22 reports, which cited an executive saying its sports utility sales surged 92 percent in the first quarter and that new vehicles would help the company post a 30 percent increase in 2013 sales.