bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

THE market's attempt to rally above 7,000 points fell flat yesterday as a 62.27-point gain in the morning was quickly wiped out after lunch.

  The Hang Seng Index closed down 0.6 points at an intra-day low of 6,955.5. Turnover was $3.21 billion.

  The index has closed below 7,000 for the past three days after trading above the mark during the previous two months.

   The index has dropped 3.4 per cent or 251 points in the past two weeks.

  ''Sentiment is very bearish and a lot of European investors are very cautious about China's measures to control the economy and its potential impact on Hongkong,'' said a broker with local investment house.

  Kleinwort Benson assistant director Tony Edwards said the index's failure to trade above the technical support level of 7,000 might force investors to ask when the market should start discounting the fundamental economic changes now happening in China.

  In particular, he said an important factor was a net outflow of capital from Hongkong expected over the next six to nine months as investors looked for exposure in other markets.

  A factor in the afternoon fall was heavy overseas selling, particularly by British institutions, of Cheung Kong and Hutchison Whampoa.

  Cheung Kong dropped 30 cents to $25.30, marking its eighth consecutive day of decline.

   Hutchison closed unchanged at $20.30 after hitting an intra-day high of $20.70 before lunch.

  Brokers said Cheung Kong was a stock which outperformed the market during rallies and corrections and many investors had decided to capitalise on the stock's strong run in April and May to take profits.

  Another blue-chip stock to weaken further was Jardine Matheson, which lost 50 cents to $56. The stock has now dropped 6.6 per cent or $4 since July 1 as many institutional investors also took profits.

  CITIC Pacific climbed 60 cents to $16 to reverse a slide that had seen a $1.90 or 10.9 per cent drop since July 1.

  Brokers said the rise was due to a compromise agreement reached on Tuesday between the Government and a consortium, including CITIC Hongkong, CITIC Pacific and China Merchants, involving the Western Harbour Crossing.

    A major theme yesterday was the resurgence of the red-chip sector with a number of counters posting sharp jumps, due in large part to speculative interest.

  Ong Holdings, which is 55.4 per cent owned by mainland-controlled Forma Property, surged 27.5 per cent or $1.60 to $7.40.

  Ong, which announced a $344 million rights issue last week at $1.50 a share, has nearly doubled in the past two weeks. In mid-June, the stock was trading at $2.

  Kader Investment, which had slid below $20 after hitting a record high of $30, was up $3.50 or 17.6 per cent to $23.30.

  Other mainland-controlled stocks to rise were metal and minerals trader Eastern Century, which climbed 14.6 per cent or 47.5 cents to $3.75, and Paragon Holdings, which edged up 10.9 per cent or six cents to 61 cents.

    Semi-Tech (Global) climbed 50 cents to $19.20, the highest it has traded in more than a year. Semi-Tech's 1994 warrants were up nine per cent or three cents at 36 cents.

  The stock has climbed 18.5 per cent since Semi-Tech announced plans last month to sell its 51 per cent stake in Singer to its Canadian parent, International Semi-Tech Microelectronics for US$850 million.

  Rhine Holdings, which makes, wholesales and exports jewellery, closed at $1.13 after its first day of trading, a 13 per cent jump from its issue price of $1.

  The stock, which saw an intra-day high of $1.28, was among the most heavily traded with volume of 50.1 million shares.



Assault on 7,000 repulsed