SHANGHAI Share prices down

China's shares fell a whisker yesterday as a broad liquidation ahead of a long market holiday offset positive reaction to a plan by Huaxia Bank to issue subordinated bonds, brokers said.

The benchmark Shanghai composite index, grouping hard-currency B shares for foreigners and yuan-denominated A shares, edged down 0.37 per cent to 1,586.493 points.

Shenzhen's sub-index dipped by 0.15 per cent to finish at 3,706.61.

Shanghai's B-share index ended 0.29 per cent down at 112.144 while Shenzhen's climbed 0.33 per cent to close at 285.83 points.

"A holiday mood prevailed today, with many investors having left the market,'' said analyst Hu Zhiguang at China Securities.

China's Shanghai and Shenzhen stock exchanges will be closed from Monday till January 28 for the annual Lunar New Year holidays. Trade resumes on January 29.

Huaxia Bank plans to issue 4.25 billion yuan (US$513.5 million) in bonds to boost capital, it said yesterday, the first listed lender to jump onto a fledgling plan to clean up a shaky financial sector.

HONG KONG

Hang Seng Index down 0.5 per cent

Hong Kong shares edged down slightly yesterday as investors took their cues from Tokyo's plunge and held off major bets ahead of the Lunar New Year holiday.

The Hang Seng Index shed 71.07 points, or 0.5 per cent, finishing at 13,249.81. On Wednesday, the index dropped 75.77 points, or 0.6 per cent.

Turnover dropped to HK$20 billion (US$2.56 billion) from Wednesday's HK$22.95 billion (US$2.95 billion).

"Investors are reluctant to build their positions ahead of the Chinese New Year. They aren't willing to hold stocks till after the long holiday,'' said YK Chan, a strategist at Phillip Asset Management.

TOKYO

High-tech, automaker shares lower

Tokyo stocks dropped yesterday as investors took profits from recent gains. The US dollar was up marginally against the Japanese yen.

The Nikkei Stock Average of 225 issues closed down 197.85 points, or 1.82 per cent, at 10,665.15 points. On Wednesday, the index gained 13.32 points, or 0.12 per cent.

On the stock market, profit-taking drove high-technology and automaker shares lower. Semiconductor-related issues Advantest dropped 3.6 per cent, while Tokyo Electron lost 3 per cent and TDK fell 3.9 per cent.

NEW YORK

Dow Jones average up

Investors had a surge of optimism on Wednesday ahead of the first major fourth-quarter earnings reports, sending stocks sharply higher and carrying the Dow Jones industrial average up more than 110 points.

Wall Street managed to shake its nervousness from earlier in the week, investing heavily in blue chips and tech stocks in the hope that Intel Corp and other major firms would come through with positive earnings results after the close of trading. Intel did easily beat earnings projections, but its first-quarter outlook appeared to disappoint the market, and it and other high-tech stocks fell in after-hours trading and raised the possibility of more selling yesterday.

During the regular session, the Dow closed up 111.19, or 1.1 per cent, at 10,538.37, more than making up for a 58-point drop on Tuesday.

Broader stock indicators also closed higher. The NASDAQ composite index was up 14.69, or 0.7 per cent, at 2,111.13. The Standard & Poor's 500 index was up 9.09, or 0.8 per cent, at 1,130.31.

KUALA LUMPUR

Investors"worries about bird flu virus

Malaysian shares closed lower yesterday amid concerns about the regional impact of a bird flu that has ravaged poultry in other parts of Asia, traders said. The weighted Composite Index of 100 blue chips on the Kuala Lumpur Stock Exchange closed down 1.18 points, or 0.1 per cent, at 814.80 points. Decliners outnumbered advancers 664 to 143, with 217 shares unchanged and 204 shares not traded. Volume traded was at 513 million shares with a value of around 1 billion ringgit (US$263 million).

MANILA

Market ends lower on Meralco's rate woes

Philippine shares ended lower yesterday, spooked by the Supreme Court's preliminary decision to suspend a government-approved rate hike for Manila Electric, or Meralco, traders said.

The 30-company Philippine Stock Exchange Index closed down 17.40 points, or 1.1 per cent, at 1,507.90, after Wednesday's 1.2 per cent rise.

The more widely traded Meralco B was among the most actively traded stocks, down 3.50 pesos, or 12 per cent, to 30.50 pesos, while Meralco A fell 2.25 pesos, or 10 per cent, to 19.60 pesos.

(China Daily 01/16/2004 page11)