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HK shares close lower on profit-taking

(Xinhua)
Updated: 2007-06-26 08:58

Strong profit-taking pressure and broad declines throughout Asia sent Hong Kong's benchmark index lower on Monday, breaking a six-session winning streak that resulted in a rise of over 1,400 points, or 7 percent.

The benchmark Hang Seng Index fell 177.56 points, or 0.8 percent, to 21,822.35.

Turnover reached HK$83.96 billion (US$10.76 billion), down from HK$95.81 billion Friday.

Analysts said they expect the blue-chip index to trade near 22,000 points in the coming days on futures-related demand, though they said a correction will likely follow in July given the spate of initial public offerings that will drain liquidity from the stock market.

For this week, analysts said they expect the blue-chip index to trade near 22,000 points on demand linked to futures trading. In the next few days, "the market is likely in the hands of bulls who have bullets to hold the market strength till the futures expirations on Thursday," ICEA said in a research note Monday.

Among blue chip stocks Monday, 34 out of 39 ended in the red, dragged by a sharp correction in the Chinese mainland stock markets in the afternoon, as well as the broad decline in regional bourses.