Pullback in resources drags HK shares off highs

Thu Jul 24, 2008 5:25am EDT
 
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* Main index closes easier after firm start

* Resource stocks slide with oil below $125

* Turnover hits 6-week high

By Parvathy Ullatil

HONG KONG, July 24 (Reuters) - Hong Kong shares closed 0.2 percent lower after a skittish Thursday session as resources shares dragged the main index back after its firmest start in six weeks, undercutting an extended rally in financial stocks.

Bourse operator Hong Kong Exchanges & Clearing (0388.HK: Quote, Profile, Research, Stock Buzz) rose nearly 3.6 percent to a five-week high at HK$124.50, recovering sharply from the HK$100 low it hit on July 8, as turnover on the exchange hit its highest level in six weeks.

The recent rally in the stock market has spurred short covering in shares of Asia's top exchange operator.

But CNOOC (0883.HK: Quote, Profile, Research, Stock Buzz) fell close to 2.2 percent, while coal miner China Shenhua (1088.HK: Quote, Profile, Research, Stock Buzz) dropped 4.9 percent as crude oil prices held below $125 per barrel after U.S. data showed a big increase in crude inventories, indicating high prices were starting to affect demand.

The Hang Seng Index .HSI closed 46.83 points lower at 23,087.72.  Continued...

 

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