Property stocks fell across the board yesterday amid profit taking and concern the depressed economy could cut developers' earnings.
Mainland developer Shimao Property Holdings was the worst hit, losing 8.43 per cent to close at HK$4.67. Wharf (Holdings) dropped 7.69 per cent to HK$18, Agile Property Holdings was down 6.88 per cent at HK$2.84, and Sino Land fell 5.52 per cent to HK$7.18.
Cheung Kong (Holdings) declined 3.29 per cent to HK$70.50, while Sun Hung Kai Properties closed 2.05 per cent lower at HK$67.95.
'The sector was under selling pressure, as it gained so much once the market opened last Thursday after the Lunar New Year break,' said Li Kwok-suen, a fund manager at Phillip Capital Management.
Most property stocks gained 3 to 5 per cent last week, he said, adding that the decline coincided with a 3.14 per cent fall in the Hang Seng Index.
He said mainland property stocks dropped as investors turned impatient in the absence of an announcement of new stimulus measures to prop up the ailing industry.
'The lack of positive news may trigger another round of selling in the sector. Trading in the property sector will become volatile from now until the interim earnings reporting season kicks off next month,' he said.
