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Correction seen as positive for market

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STOCKS headed lower yesterday as a lack of positive news let profit-takers have the market to themselves.

After rising as much as 14 per cent this year, the market was due for some consolidation and brokers said it was a healthy sign.

The inflow of foreign money was weaker, although it did help the index retrace some of its losses in afternoon trading.

The Hang Seng Index closed 56.82 points down at 11,331.77, a loss of 0.49 per cent. At one stage it had been down 128.49 points.

Turnover was healthy at $5.7 billion, down from the revised $12.61 billion for Wednesday. Volume was steady, with $2.36 billion shares changing hands.

ING Barings sales director James Osborn said: 'Overall it was pretty lacklustre. We've had a couple of good weeks and the market had to give some ground.' The major item of corporate news was speculation about the final results of Bank of East Asia, released after the market closed.

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