HK stocks close lower before lunar new year

Special Report:Global Financial Crisis

HONG KONG, Jan. 23 (Xinhua) -- Profit-taking in financial companies and profit warnings from resources firms dragged Hong Kong shares lower Friday, but index heavyweight HSBC helped narrow losses on the last trading day before the lunar new year holiday.

The Hang Seng Index fell 79.39 points, or 0.6 percent, to 12, 578.60 after trading between 12,469.84 and 12,734.80 during the session.

Turnover fell to 33.73 billion HK dollars (4.35 billion U.S. dollars) from 35.38 billion HK dollars (4.57 billion U.S. dollars) on Thursday.

Traders said investors were reluctant to hold stocks over the Chinese New Year holiday, when overseas markets will still be open. The local market will be closed from Jan. 26 to Jan. 28.

HSBC extended its rebound from Thursday after falling 26 percent in eight consecutive sessions. HSBC ended up 0.8 percent at 57.45 HK dollars after being hammered by concerns it may need to raise additional funds because of the financial crisis.

Investors took a profit in other financial firms. Hang Seng Bank fell 1.6 percent to 85.20 HK dollars and Bank of East Asia fell 4.3 percent to 14.58 HK dollars.

Property heavyweight Cheung Kong also weighed on the market, ending down 1.3 percent at 67.65 HK dollars.

Some companies that issued profit warnings ended lower. Sinopec fell 1.6 percent to 4.18 HK dollars, but off its early low of 4.10 HK dollars, after it said it expects its 2008 net profit to fall more than 50 percent on high crude prices and low chemical product prices in the Chinese mainland. Goldman Sachs said Sinopec's profit warning has negative implications for PetroChina, China's largest listed oil company by capacity. It fell 3 percent to 5.58 HK dollars.

Chinese alumina and aluminum producer Chalco fell 3 percent to 3.20 HK dollars after it said its 2008 net profit may fall more than 50 percent from 2007's 10.24 billion yuan (1.5 billion U.S. dollars) on weak demand from the property and auto sectors coupled with high energy costs.

Coal producer Yanzhou Coal fell 5.8 percent to 4.90 HK dollars.

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