Hong Kong shares edge down, China Mobile loses ground

12 Dec 2006
00:00

(Associated Press via NewsEdge) Hong Kong shares edged down last week, hurt by a decline in China Mobile and an overnight drop on Wall Street.

The blue-chip Hang Seng Index fell 103 points, or 0.55%, to 18,739.99.

China Mobile, the country's largest mobile phone operator by subscriber, fell 1.8% to HK$61.8 ($7.95) as sentiment toward the stock weakened after an institutional holder sold shares.

Li & Fung suffered the biggest decline among blue chips, plunging 3.2% to HK$22.75 ($2.93) after rising 71% so far this year. Deutsche Bank cut the stock's rating from buy to hold.

Newcomer China Communications Services, whose parent is China Telecom, soared 85.5% from its offer price of HK$2.20 ($0.29) to finish at HK$4.08 ($0.52).

Traders said the stock is trading at a high valuation given the company last year only enjoyed a net margin of 4.5%.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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