Hong Kong shares end 0.28% down

Written By Unknown on Selasa, 06 November 2012 | 16.41

HONG Kong stocks have fallen 0.28 per cent with dealers displaying caution as they await the outcome of the neck-and-neck US presidential election.

The benchmark Hang Seng Index on Tuesday eased 61.97 points to 21,944.43 on turnover of $HK54.95 billion ($A6.87 billion).

Tuesday's US poll sees President Barack Obama and his Republican challenger Mitt Romney in a dead heat, leaving markets in a tight band as traders hold off making any bets until the outcome is known.

"Investors are understandably a bit cautious before the US presidential election, and I'm not surprised to see some profit-taking given the recent market rally," said Jackson Wong, an investment manager at Tanrich Securities, told Dow Jones Newswires.

Eyes are also on the beginning on Thursday of the Communist Party's congress in China, which will choose its leadership for the next 10 years.

"We should keep an eye on the opening speech by President Hu (Jintao) on Thursday and wait for the new leaders to make their first appearance after the closing next week," Macquarie Group said in a note.

Banking giant HSBC fell 1.4 per cent to HK$76.70 as third-quarter results were marred by provisions to settle money-laundering charges in the United States, which have climbed to $US1.5 billion ($A1.45 billion).

Also falling was China Merchants Holdings, which lost 5.2 per cent to end at $HK24.55.

Chinese shares closed down 0.38 per cent. The benchmark Shanghai Composite Index fell 8.03 points to 2,106.00 on turnover of 53.7 billion yuan ($A8.34 billion).

Property developers and spirit makers extended falls as investors took profits following last week's gains.

Xian Gree Real Estate dropped 4.89 per cent to 6.23 yuan, Gemdale fell 1.28 per cent to 5.40 yuan and Poly Real Estate shed 1.28 per cent to 11.60 yuan.

Liquor maker Kweichou Moutai lost 2.88 per cent to 235.93 yuan while Sichuan Swellfun fell 2.40 per cent to 23.63 yuan.


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