Hong Kong stocks again failed to break through the 14,000-point level yesterday as a sharp fall by Japanese stocks cooled sentiment. Brokers said investors were cautious ahead of United States Federal Reserve chairman Alan Greenspan's testimony before the Senate budget committee later today. The Hang Seng Index ended up 11.84 points at 13,868.24. Turnover fell to $11.35 billion from $13.51 billion on Friday. Index futures continued to lag the cash market, with the spot contract ending at a 33-point discount at 13,835 points. Seapower Securities senior analyst Sunny Chan said: 'It is a case of profit-taking on who knows what will happen in the US.' Conglomerates took the lead yesterday, with the Hang Seng conglomerates sub-index rising 82.14 points to 10,019.65. Swire Pacific made the most impressive gains, jumping $2.50, or 3.48 per cent, to $74.25. Hutchison Whampoa rose 75 cents to $62.25. Delta Asia research manager Ricky Tam said after Citic Pacific's management enlarged its equity stake at a huge discount to the market, a number of fund managers had begun switching into Swire and Hutchison. Wharf rose 30 cents to $39.20 while Wheelock added $1 to $24.10. Wheelock's recent residential property sale in North Point was well-received, analysts said. Banking stocks were mixed despite two large warrants placed on the sector. Merrill Lynch set 1.8 billion warrants and Goldman Sachs set 250 million warrants on baskets of financial stocks. Peregrine set 160 million warrants on Sino Land and UBS set 65 million warrants on Cheung Kong. H shares and red chips continued to underperform, in sharp contrast to their run-away performance at the end of last year. Shanghai Industrial fell 1.24 per cent and China Resources was off 4.68 per cent. The Hang Seng China Enterprises Index fell 1.37 per cent. Mining firm Grand Orient fell 18.46 per cent to $1.59 after it said it planned to issue $349 million in new shares at $1.30 each. China Travel dropped 3.7 per cent as the excitement caused by last week's warrant placement cooled. Having tried and failed to break the 14,000-point level on three occasions, the index looked set for a correction, analysts said. 'Technically, it is very negative, the market needs a correction,' Mr Chan said. Derivatives traders are anticipating a rough ride in the coming weeks. Front-month implied volatility in the options market rose to 25.5 per cent yesterday from about 16 per cent at the start of last month.