Hong Kong stocks headed lower yesterday as weakness on Wall Street sent the market to its fourth straight day of losses. Brokers said a lack of domestic news meant investors were looking to the US for direction and that prompted many to sell. HSBC led the way down, finally joining the slump after holding firm against earlier selling. The Hang Seng Index closed 70.6 points down at 12,192.17. It has now fallen 300 points since setting a new closing high last Wednesday. Turnover edged up to $5.52 billion from Monday's revised $5.49 billion. Samuel Ho, senior marketing manager at Seapower Securities, said: 'There is not much news in the market and turnover started to shrink. 'Investors are concerned about Wall Street and the upcoming release of economic figures from the US.' US stocks pointed the way down with US investors selling amid fears that economic data out this week could mean an interest rise. The weakness on Wall Street not only affected Hong Kong but helped drag most Asian markets lower. Brokers said the US Federal Reserve might feel more at ease about raising interest rates after the upcoming US presidential elections. Kent Rossiter, senior institutional sales manager at Nikko Securities, said: 'The presidential elections are only a week away. That is on a lot of investors minds right now.' Among the 33 Hang Seng Index constituents, four advanced, seven closed unchanged, and 22 lost value. HSBC posted the biggest net loss in the market as it finally succumbed to the selling pressure. The bank fell $2 to $154.50, after having risen 8.93 per cent this month. Other blue-chip banks also went into reverse. Hang Seng Bank slid $1 to $89.75, and Bank of East Asia fell 15 cents to $29.85. Hotel stocks bucked the trend with investors still feeling confident about the expected shortage in hotel rooms. Shangri-La Asia added 20 cents to $10.90, and Hongkong & Shanghai Hotels was unchanged at $13.90. Outside the index, recently listed casual-wear manufacturer Glorious Sun Enterprises rose in high volume as speculators again bid up the stock. Glorious Sun rose 32.5 cents to $3.80. Earlier this month it soared as high as $4.85 in a post-listing frenzy. Looking ahead, brokers see the consolidation continuing for some time yet, although many see support at 12,000 or 11,800. Mr Ho said: 'Stocks are likely to trend lower as the profit-taking is likely to continue.'
