Hong Kong shares eased yesterday in thin trade as worries about further falls in most regional currencies overshadowed a drop in local interbank rates, brokers said.
Salomon Smith Barney vice-president Gordon Crosbie-Walsh said: 'Volumes are down, regional markets are terrible and all around friends are losing their jobs.' The Hang Seng Index closed at 10,346.38, down 88.77 points and taking the losses for this week to 268.28 points.
Three-month Hibor rates fell 37.5 basis points to 9.5 per cent.
Turnover was just $7.22 billion, but traders said a $600 million placement of CNPC shares had inflated the figure.
Mr Crosbie-Walsh said clients were staying away from the market as the end-of-year break approached.
Steve Cheng Ka-wa, associate director of Lippo Securities, said: 'No one wants to have a large position over the holidays.' The market will only trade for 2.5 days next week, closing at lunchtime on Wednesday.
Possible threats to the Hong Kong dollar peg over the long term again caused traders to worry.
