Reuters logo
Hong Kong shares close down 0.3 pct, China Unicom weak
January 12, 2012 / 8:11 AM / 6 years ago

Hong Kong shares close down 0.3 pct, China Unicom weak

HONG KONG, Jan 12 (Reuters) - Hong Kong shares snapped a three-day winning streak on Thursday, stalled by chart resistance levels formed in the last quarter and with China’s December inflation data giving investors little incentive to chase a New Year rally.

The Hang Seng Index closed down 0.3 percent at 19,095.38. The China Enterprises Index of top mainland listings in Hong Kong finished up 0.02 percent at 10,519.21.

The Shanghai Composite Index ended a choppy Thursday session down 0.05 percent at 2,275.01 in the weakest A-share turnover the week so far.

HIGHLIGHTS:

* The Hang Seng Index finished close to the bottom of its trading range after testing earlier resistance at 19,242, which was its December peak. With China’s December inflation data slightly above market expectations, there was little incentive for investors to chase a New Year rally that had lifted the benchmark almost 4 percent in just over a week.

* China Unicom (Hong Kong) Ltd, the Hong Kong listed arm of the mainland’s second-largest mobile operator, shed 4.4 percent in more than five times its 30-day average volume, sinking below its 200-day moving average to the lowest since Oct. 24. It has lost 9.3 percent in a three-session losing streak.

* A 44 percent gain last year made China Unicom the top performer among Hang Seng Index components as investors sought the relative safety of its subscriber momentum amid uncertainty over the pace of the slowdown in China’s economy. But doubts have been cast on that element of safety as competition intensifies, with smaller rival China Telecom Corp Ltd gaining iPhone operating rights in mainland China and bigger rival China Mobile Ltd getting better quality smartphones, CLSA analysts wrote in a note dated Jan. 11. (Reporting by Clement Tan and Vikram Subhedar; Editing by Chris Lewis)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below