Stocks tumble on SHKP cash call
AS was widely expected, Hong Kong stock prices tumbled yesterday in the wake of Tuesday's huge cash call from Sun Hung Kai Properties.
The four-day consolidation has wiped out more than half of last week's 5 per cent rise.
Sun Hung Kai Properties saw its shares drop 3.47 per cent after Tuesday's $4 billion placement, but the shares managed to close above the issue price of $62.125.
Despite the consolidation, turnover is well above last year's anaemic levels, reaching $9.31 billion yesterday.
Brokers still see bullish prospects for the Hang Seng Index, once the market has a chance to digest the recent cash calls from Citic Pacific and Sun Hung Kai Properties.
Investors remain wary of further demands that may be placed on the market if other developers follow suit and issue scrip to raise money.