HK shares end lower, turnover falls to 16-month low

HONG KONG, July 28 (Xinhua) -- Hong Kong's benchmark Hang Seng Index edged down 0.24 percent led by property shares on profit-taking Monday, with the turnover fell to a near 16-month low.

The blue-chip Hang Seng Index fell 53.50 points, or 0.24 percent, to 22,687.21 after trading between 22,619.23 and 22,862.03 during the session. The index rose 4 percent last week.

Sharply down from Friday's 61.39 billion HK dollars (7.88 billion U.S. dollars) the total turnover dropped to 41.47 billion HK dollars (5.32 billion U.S. dollars) Monday, the lowest daily level since April 3, 2007 when it was 40.01 billion HK dollars.

Analysts said trading activity has slumped as investors awaited cues from U.S. data due this week, including July's consumer confidence report on Tuesday, and the Chicago purchasing managers' index for July and second-quarter gross domestic product on Thursday.

Property firms led the local market's decline on profit-taking after the Hang Seng property sub-index rose 5.6 percent last week. The property sub-index fell 0.41 percent Monday to 27,596.56. Li Ka-shing's property flagship, Cheung Kong, ended down 0.7 percent at 110.20 HK dollars and Sun Hung Kai Properties slipped 0.6 percent to 117.80 HK dollars.

Hong Kong Exchanges, the operator of the local bourse, fell 1.4percent to 118.80 HK dollars on concerns. Weak market turnover in recent months will take its toll on the company's first-half earnings. The company will disclose its first-half result on Aug. 13. Some analysts expect Hong Kong Exchanges will continue to fall because of weak market momentum.

Bucking the overall market, Yanzhou Coal Mining advanced 2.5 percent to 13.80 HK dollars after it said it expected first-half net profit to more than triple from a year earlier on a substantial rise in coal prices. China's two largest listed coal producers by revenue also rose on the sector's positive earnings outlook. Shenhua Energy gained 0.7 percent to 29.30 HK dollars and China coal closed 0.3 percent higher at 14 HK dollars.

The six banks were little changed. CCB was down 0.58 percent, ICBC down 0.35 percent, Bank of China up 0.28 percent, Bankcomm down 0.4 percent, CM Bank down 0.71 percent and CITIC Bank up 0.41percent.

The three insurers declined although mainland stock markets performed well. China Life was down 0.34 percent, Ping An down 1.46 percent and PICC P&C down 1.77 percent.