Hang Seng Drops 1.5%, Broad Losses Across Sectors

• Apr 27, 2010
• Sectors:   China Report
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The Hang Seng Index declined 1.51% to close at 21,261.79 on April 27, in main board trading volume of HK$60.26 billion.

Heavyweight financial stocks dragged on the index. China Life Insurance (NYSE:LFC, 2628.HK, 601628.SH) and China Merchants Bank (3968.HK, 600036.SH) each lost 2.17%, Industrial and Commercial Bank of China (ICBC) (1398.HK, 601398.SH) and HSBC (NYSE:HBC, LON:HSBA, 0005.HK) lost 1.86% and 1.81%, respectively, and China Construction Bank (0939.HK, 601939.SH) fell 1.56%.

Resources shares also broadly fell. China Shenhua (1088.HK, 601088.SH) fell 2.12%, China Coal Energy (1898.HK, 601898.SH) decreased 1.81%, while China National Offshore Oil Corporation (CNOOC) (NYSE:CEO, 0883.HK) and PetroChina (NYSE:PTR, 0857.HK, 601857.SH) lost 1.72% and 1.41% respectively. Yanzhou Coal Mining (NYSE:YZC, 1171.HK, 600188.SH) bucked the trend, rising 1.85%.

Retailer shares corrected after strong growth on Monday in expectation of strong sales during the upcoming May 1-3 holidays. Yahoo Hong Kong's Chinese language site reported. Tse Sui Luen (0417.HK) slumped 7.09%, Golden Eagle (3308.HK) lost 3.63% and Gome (0493.HK) retreated 2.95%.

Healthcare companies remained upbeat despite the general market weakness, mirroring mainland pharmaceutical stocks. Wuyi International Pharma (1889.HK) surged by 10% after reporting a profit of RMB 392.85 million compared with a loss of RMB 51.93 million in 2008. China Pharma (1093.HK) went up 4.9%. China Pharma expects its vitamin C sales to increase by 7.4% year-on-year and its processed drug business to become profitable within the next two years, Wen Wei Po reported April 26.

BYD Co. (1211 HK) reported first-quarter 2010 profits of RMB 1.7 billion, up 255% year-on-year as revenues expanded 70% year-on-year to RMB 12.66 billion. Shares in the company fluctuated during the day to finish down 3.67%.

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