(Corrects HSBC milestone in headline)
* HSI down 1.3 pct, set for 4th straight weekly loss
* Shanghai Composite down 0.4 pct, set for 3rd weekly loss
* Low HK turnover likely to persist to yr-end -strategist
By Clement Tan
HONG KONG, Nov 25 Hong Kong shares fell on
Friday, poised to post a fourth straight weekly loss as
investors cut risk ahead of the weekend, with the benchmark Hang
Seng Index struggling to hold at chart support levels.
Market watchers said foreign investors, particularly
European funds, were likely to take further profit in the run-up
to year-end, keeping turnover weak with risk aversion staying
high in global markets as funding fears spike in Europe.
"Investors are looking at oversold consumer stocks and
shares of companies that provide current income such as power
companies and expressway builders," said Peter So, a strategist
with CCB International Securities in Hong Kong. "But sustainable
dividend growth is not the only consideration with investors
looking to position themselves for when the global situation
The Hang Seng Index was down 1.29 percent at
17,704.54 at the midday trading break. The benchmark struggled
all morning before finishing below the 61.8 percent retracement
of its rise from the Oct. 4 low to Oct. 28 high, at about 17,735
If this support is broken at the end of trading on Friday,
chart support is next seen between 17,179 and 17,437, the high
on Oct. 6 and low on Oct. 7, respectively.
HSBC Holdings Plc, Europe's largest bank, slumped
to its lowest level since May 2009 and with a 15 percent
weighting was a big part of the Hang Seng Index's slide.
The gridlock in Europe over the region's debt problems has
hit the bank hard. It is down almost 20 percent in November so
far, poised for its worst month in more than three years and
driving its 12-month forward earnings multiples to the lowest in
at least the last 15 years, according to Thomson Reuters
Starmine data. At 7.3 times, it is 4.3 percent off its
WEEKLY TURNOVER IN SHANGHAI LOWEST IN 7 WEEKS
The Shanghai Composite Index was 0.4 percent lower
at 2,388.9 points at midday, poised for a third straight weekly
loss in the lowest A-share weekly turnover seen in the last
Financials were the standout underperformers after strength
in the sector, along with property developers helped the
Shanghai benchmark snap a six-day losing streak on Thursday.
In all, six financial stocks figured among the top 10 drags
with the mainland's biggest bank by market capitalisation,
Industrial and Commercial Bank of China Ltd (ICBC)
the top drag, down 1.4 percent.
Resources-related stocks also suffered on lingering growth
concerns, with top coal producer China Shenhua Energy Co Ltd
down 0.6 percent. Local media also reported that
thermal coal prices could be capped.
(Editing by Chris Lewis)