THE Hang Seng Index took another tumble yesterday, with stocks falling 112.15 points, or 1.41 per cent, to 7,862.67 points. Turnover was $2.65 billion, $603 million up on Monday, but still well behind last week's highs. Morning trading was hit by a new report that China's ailing paramount leader, Deng Xiaoping, was near death. Concerns about a new round of United States economic statistics also were blamed for falls, despite sentiment being generally positive, traders said. Losses were recorded across all sub-indices, with finance being the hardest hit. Brokers said houses that had planned to launch covered warrants were unloading blue-chip stocks back into the market. After a drop of 38 points on Monday, the index fell more than 50 points in the first 15 minutes. Dealers said volumes in early morning trading were thin with many preferring to stay on the sidelines awaiting signs of an outcome from the Sino-American trade talks and fresh news on the US economy. The market continued to drift down by about another 50 points in trading up to midday. Stocks fell sharply just before mid-session on a South Korean newspaper report that China's paramount leader was in a coma and needed oxygen support. The index was down 159.05 points, or 1.99 per cent, to 7,815.77 points, on a turnover of about $1.4 billion. The finance sub-index fell by 151.48 points, or 2.26 per cent, with HSBC Holdings dropping $2 to $78. The market recouped some losses in afternoon trading, rising 46.9 points to close at 7,862. The day's trading ranged between a high of 7,964.77 points and a low of 7,809.63 points. For the Hang Seng sub-indexes, the biggest loser for the second day were financial stocks, down 2.02 per cent, or 135.28 points, to 6,566.07 points. Utilities fell 1.19 per cent, or 117.07 points, to 9,760.95 points, while property fell 1.11 per cent, or 148.73 points, to 13,229.64 points. Commerce and industry, which had been one of the star sectors, dropped 1.38 per cent, or 83.72 points, to 6,004.78 points. Lennon Chan, a director of Tai Fook Securities, said: 'Some traders were unloading stock because of concerns that they will be unable to launch their covered warrants. 'The selling pressure on stocks such as Henderson Land and Sun Hung Kai Properties was extremely heavy because of this.' Sun Hung Kai Properties, one of the territory's three largest property developers, fell 70 cents to $46.20 on a turnover of $132.7 million, while Henderson Land Development, another of the major property developers, fell $1 to $36.40 on a turnover of $100.2 million. HSBC Holdings, which recorded the day's highest turnover at $228.4 million, fell $1.75 to $78.25. Hutchison Whampoa, one of the territory's biggest conglomerates, fell 20 cents to $30.40 on a turnover of $110 million. A feature of the day's trading was TVB, which on Monday announced that British-based Pearson Group was intending to take a 10 per cent stake in the company. The stock fell $2.20 to $29.80 on a turnover of $182.3 million. Hongkong Telecom, also one of the days most heavily traded stocks at $97.2 million, fell 20 cents to $13.80. Bank of East Asia fell 35 cents to $25.50.
