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Second liners hold up better than blue-chips

Carrie Lee

CONTINENTAL Holdings resumed trading yesterday only to become the day's biggest percentage loser, on the heels of an announcement of a proposed rights issue.

The stock dived 22.535 per cent, or eight cents, to 27.5 cents and posted the day's seventh heaviest volume of 21.5 million shares on a turnover of $5.96 million.

The All Ordinaries Index lost 2.74 per cent, or 154.8 points to 5,493.42, compared with the 3.43 per cent fall in the Hang Seng Index.

This suggests that second-and third-line stocks in general stood firmer than blue chips.

Three Hang Seng Index constituent stocks featured in the top-10 losers list - further evidence that a significant proportion of the All Ordinaries fall was contributed by blue-chips rather than second-or third-liners.

The 10 heaviest traded blue-chips in monetary terms generated a combined turnover of $2.96 billion, accounting for 48 per cent of the total market turnover of $6.13 billion.

That compared with Tuesday's 43.65 per cent.

Index constituent stocks together generated a trading volume of 121.75 million shares, representing 12.13 per cent of the total market volume of one billion shares.

That compared with 11.31 per cent on Tuesday, and the usual level of around six per cent.

This all indicates that index constituent stocks contributed more to total market activity yesterday than on Tuesday.

Teletech International was the day's second biggest loser on the heaviest volume, after the Tuesday announcement of a net loss for the year to December 31, and of the over-subscription of its rights issue.

It dived 13.699 per cent or one cent to 6.3 cents, as 98.79 million shares worth $6.49 million changed hands.

Walsin International Holdings issued a statement advising potential investors to exercise extreme caution in dealing in the company's shares, noting their recent unusual trading volumes.

It said negotiations over the change in the control of the company and a general offer, as previously announced, had not reached any conclusion.

The stock was the day's fifth best performer in percentage terms, soaring 5.76 per cent or 22.5 cents to $4.125 on a turnover of $18.84 million generated by 4.53 million shares traded.

UDL Holdings said yesterday it had bought back 510,000 of its own ordinary shares at prices per share ranging between $1.27 and $1.29 on Tuesday.

Pacific Concord Holding bought back 294,000 ordinary shares on Tuesday at a price per share of $3.65, paying a total of $1.07 million.

That was after it bought 740,000 ordinary shares on Monday.

Tse Sui Luen Jewellery (International) bought back 210,000 ordinary shares at prices per share ranging between $2.90 and $2.925 on Tuesday, after buying 60,000 ordinary shares on Monday and 230,000 ordinary shares last Wednesday.

Simsen Metals (Holdings) passed its market debut yesterday as the fourth heaviest traded stock in volume terms.

Pricerite Group starts trading today.

Win Win International Holdings, Matrix Holdings, and Van Shung Chong Holdings start trading tomorrow.