Hong Kong stock prices fell for the second straight day yesterday, with property and media stocks suffering the biggest losses. With cash-market turnover remaining low, futures set the pace, brokers said. The blue-chip Hang Seng Index ended down 49.18 points or 0.45 per cent at 10,855.29. Turnover was a weak $3.95 billion, well under Wednesday's revised figure of $4.5 billion. The market was closed on Thursday for a public holiday. June futures contracts closed at 10,825 points, down 81 points from Wednesday and at a 33-point discount to the underlying cash market. The Hang Seng Index attempted to hold its ground in the early session until a sharp fall in June futures dragged it lower. The index fell 105 points before finding support at 10,800. Analysts said 10,800 represented a trend line that had supported the market at various times over the past year. Continuing uncertainty over US interest rates was blamed for the pressure on property shares yesterday. Cheung Kong Holdings lost 50 cents, or 0.9 per cent, to close at $54.75. Amoy Properties fell to $9.20, down 10 cents or 1 per cent. Traders said data released on Thursday by the Philadelphia branch of the US Federal Reserve did little to cool investor fears that US interest rates will be raised early next month. 'Interest rates will continue to haunt property shares until next month when company results will pull attention away,' Dao Heng Securities sales and development manager K.K. Low said. Many investors focused on second-tier stocks, brokers said. AsiaSat shares fell 75 cents to $24 on their second day of trade on volume of more than 6.5 million shares. Wei Kee Holdings gained 15 cents to $2.40 after the company announced plans to sell shares in Road King Infrastructure for up to $8.78. While admitting the 10,800-point line would offer some support next week, brokers were negative on the market's short-term outlook. 'Sentiment is deteriorating,' Primeeast Securities sales director Allen Chang said. 'Unless there is good news or fresh funds from overseas, the market will continue to edge down.'
