Hong Kong stocks fall modestly after Fed keeps rate steady

HONG KONG, June 26 (Xinhua) -- Hong Kong stocks reversed early gains and moved into negative territory by losing 0.79 percent on Thursday after the U.S. Federal Reserve held interest rate unchanged and gave no sign it is preparing for rate hikes in immediate future.

The benchmark Hang Seng Index rose 107.38 points, or 0.47 percent, to open at 22,742.54 and once widened the gains by 250.19points, or 1.1 percent, to the day's highest 22,885.35 during the morning session.

Momentum of the market turned around in the afternoon as investors sold blue-chip companies like China Mobile, PeotroChina and Esprit, pulling down the index by 179.49 points, or 0.79 percent, to close at 22,455.67, barely off the intra-day low 22, 441.47.

Turnover rose to 59.46 billion HK dollars (7.62 billion U.S. dollars) from Wednesday's 37.90 billion HK dollars (4.86 billion U. S. dollars) in shortened trading due to tropic storm Fengshen, which battered Hong Kong on Wednesday morning.

Blue-chip heavyweight HSBC, which accounts for the largest weighting of the Hang Seng Index, stood unchanged at 124 HK dollars.

Heavily traded China Mobile, the largest mobile phone operator in the country and the market's largest stock measured by capitalization, dropped 1.21 percent to 106.2 HK dollars, downing the index by 33.6 points alone.

Energy companies all fell as oil prices eased at around 134 U.S. dollars a barrel in Asia trade. PetroChina, the country's largest oil producer, lost 1.34 percent to 10.3 HK dollars, pulling down the index by 12.7 points. Sinopec, Asia's largest refiner, dipped 0.52 percent to 7.59 HK dollars. China's largest offshore oil producer CNOOC fell 1.94 percent to 13.18 HK dollars,dragging the index by 19.97 points alone.

Most of Hong Kong's property companies fell after the U.S. Federal Reserve held its interest rate steady. Sun Hung Kai Properties, the largest house developer in Hong Kong, shed 1.34 percent to 110.8 HK dollars. Cheung Kong, one of the biggest housing companies controlled by tycoon Li Ka-shing, lost 1.08 percent to 110.4 HK dollars. New World Development slumped 1.58 percent to 16.22 HK dollars. Henderson Land fell 1.28 percent to 50.35 HK dollars. Sino Land dipped 0.13 percent to 15.6 HK dollars.

Hang Lung added 0.2 percent to 25.3 HK dollars.

Hong Kong's local lender Hang Seng Bank outperformed the entire market by gaining 2.42 percent to 165 HK dollars.

Conglomerate Hutchison advanced 1.77 percent to 77.8 HK dollars.

Garment producer and exporter Esprit Holdings plunged 4.07 percent to 82.5 HK dollars. Agency for retailers and brands Li & Fung dived 6.72 percent to 25 HK dollars.

China Enterprise Index, or H-shares, which was composed of 43 companies registered on the Chinese mainland, fell 100.27 points, or 0.82 percent, to close at 12,095.98.

Most Chinese banks and insurers listed in Hong Kong were lower. Heavily traded ICBC, China's largest lender, lost 1.27 percent to 5.46 HK dollars. China Life, the country's largest insurance company, dropped 1.06 percent to 28 HK dollars. Bank of China, the country's second largest bank, dipped 0.28 percent to 3.51 HK dollars. China Construction Bank, the third largest bank in China, slid 0.93 percent to 6.37 HK dollars. Bank of Communications shed 0.87 percent to 9.11 HK dollars. China Merchants Bank slumped 2.2 percent to 24.45 HK dollars.

China's second largest insurance company Ping An outperformed the entire market by moving up 0.6 percent to 58.35 HK dollars. ( 7.8 HK dollars = 1 U.S. dollar)