Index pares losses as lenders come under the spotlight
Heavy foreign fund inflows and volatility characterised yesterday's trading as the market regained some composure after Wednesday's dizzying surge. It was the turn of banks to cash in on investor hopes of an economic recovery, following the property sector's recent big run-up.
The Hang Seng Index ended the session 0.08 per cent or 9.37 points lower at 11,286.52 as turnover hit a 31/2-year high of $21.35 billion.
Abundant liquidity had pushed stocks upwards during the morning session before they were met with resistance at about the 11,400-point level.
With the blue chips dominating, market watchers said trade had been driven by institutional investors and hedge funds.
'It's very volatile. Turnover is the highest it's been for years, with stocks riding on liquidity and the weaker [US] dollar. Such frantic trading is bound to make some stocks look pricey,' said Herbert Lau Chung-kwan, the research head at Celestial Asia Securities.