Hong Kong index gives up early gains to close lower on selling in resources, oil issues

Thu, Jul 24 05:47 PM

HONG KONG (AP) _ Hong Kong's stock market fell Thursday, dragged down by selling in oil and resources companies. The blue-chip Hang Seng Index lost 46.83 points, or 0.2 percent, to close at 23,087.72 after weakening late in the session.

Many investors decided to cash in profits after the market's recent gains, but analysts saw the downturn as a pause in a short-term upswing. "Hong Kong's market has shot up 2,000 points in a short period, so we need a consolidation," said Linus Yip, a strategist at First Shanghai Securities.

"I think we may retrace, but overall the market is still strong." Oil issues fell along with lower crude prices, though airlines gained.

Upstream oil producer CNOOC lost 2.2 percent to HK$11.66. PetroChina and China Petroleum & Chemical Corp.

, or Sinopec, also were down. Meanwhile, carrier China Southern soared 7.9 percent to HK$3.7.

Cathay Pacific was up 1.3 percent to HK$15.84. Chinese coal companies slid amid reports that Beijing will tighten controls on coal prices.

China Shenhua fell 4.9 percent, and China Coal slipped 3.6 percent. Yanzhou Coal was off 4.5 percent.

With commodity prices falling, gold and aluminum stocks also dropped. _____ On the Net: Stock Exchange of Hong Kong: http://www.

hkex.com.

hk.

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