Fri Jun 3, 2011 4:18am EDT
Hong Kong, June 3 (Reuters) - Hong Kong shares closed out the week on a bearish note as banks and coal plays dragged the benchmark index lower, keeping it tethered within a narrow range as investors remain wary of further tightening in China.
The benchmark Hang Seng Index finished off 1.31 percent at 22,949.56. The China Enterprises Index slumped 1.74 percent at the end of its worst week in a month.
On the mainland, bargain-hunters lifted the Shanghai Composite Index off a four-month low. The index closed up 0.84 percent at 2,728.02.
Highlights:
* Coal counters ran out of steam, with China Shenhua Energy Co Ltd down 6.4 percent in strong volume. Traders said investors were locking in profit after recent outperformance that had seen the sector easily outpace the benchmark. Shenhua's 7 percent gain in May compared with a flat month for the Hang Seng Index.
* Banks, the biggest weighted sector in Hong Kong, remained on the back foot over uncertainty surrounding a plan to restructure local government debt. China Construction Bank Corp fell 1.9 percent and was the top drag on the benchmark. Industrial & Commercial Bank of China Ltd fell 1.9 percent while Bank of China lost 1.2 percent.
* The debut of MGM China Holdings Ltd , the latest addition to the roster of casino operators listed in Hong Kong, caused a flutter in the sector, sending peers down as investors switched positions. MGM's valuation, at about 19 times forecast 2011 earnings, compares with about 25 times for Sands China Ltd and 26 times for Wynn Macau Ltd . Sands shed 1.4 percent while Wynn fell 3.9 percent. MGM China posted a modest 2 percent gain on its debut. (Reporting by Vikram Subhedar; Editing by Chris Lewis, sourced Reuters)
Hong Kong, June 3 (Reuters) - Hong Kong shares closed out the week on a bearish note as banks and coal plays dragged the benchmark index lower, keeping it tethered within a narrow range as investors remain wary of further tightening in China.
The benchmark Hang Seng Index finished off 1.31 percent at 22,949.56. The China Enterprises Index slumped 1.74 percent at the end of its worst week in a month.
On the mainland, bargain-hunters lifted the Shanghai Composite Index off a four-month low. The index closed up 0.84 percent at 2,728.02.
Highlights:
* Coal counters ran out of steam, with China Shenhua Energy Co Ltd down 6.4 percent in strong volume. Traders said investors were locking in profit after recent outperformance that had seen the sector easily outpace the benchmark. Shenhua's 7 percent gain in May compared with a flat month for the Hang Seng Index.
* Banks, the biggest weighted sector in Hong Kong, remained on the back foot over uncertainty surrounding a plan to restructure local government debt. China Construction Bank Corp fell 1.9 percent and was the top drag on the benchmark. Industrial & Commercial Bank of China Ltd fell 1.9 percent while Bank of China lost 1.2 percent.
* The debut of MGM China Holdings Ltd , the latest addition to the roster of casino operators listed in Hong Kong, caused a flutter in the sector, sending peers down as investors switched positions. MGM's valuation, at about 19 times forecast 2011 earnings, compares with about 25 times for Sands China Ltd and 26 times for Wynn Macau Ltd . Sands shed 1.4 percent while Wynn fell 3.9 percent. MGM China posted a modest 2 percent gain on its debut. (Reporting by Vikram Subhedar; Editing by Chris Lewis, sourced Reuters)
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