Thursday, September 18, 2008

Hong Kong stocks close 0.03% lower, recoup 7% early loss

Hong Kong's benchmark Hang Seng Index edged down 4.73 points, 0.03 percent, to close at 17,632.46 Thursday, rebounding from the largest early loss of over1,350 points, or nearly 7.7 percent, after leading central banks launched a coordinated effort to ease liquidity in the financial markets.

Hong Kong stock market experienced a roller coaster day and rebounded quickly during the afternoon session while leading central banks, including the U.S. Federal Reserve, the Bank of Japan, the European Central Bank and the Bank of England, are taking coordinated action in an attempt to ease strains in the financial markets.

The stock market were also boosted during the afternoon session on news that the Hong Kong Monetary Authority attempted to ease the credit squeeze by injecting 1.56 billion HK dollars into the banking system.

Hong Kong stocks opened 2.93 percent lower Thursday, and quickly fell off 17,000 level in first several minutes during the morning session, tracking losses of the U.S. market overnight amid a new wave of financial tsunami triggered by Lehman Brothers which filed for bankruptcy.

The Hang Seng Index once nosedived to the intraday low of 16,283.72, down 1,353.47 points, or 7.67 percent lower during the morning trading, and finished Thursday's morning session 1,301.05 points, or 7.38 percent down at midday.

Turnover rose to 102.23 billion HK dollars , above 100 billion HK dollars first time since May 7 , from Wednesday's 76.23 billion HK dollars .


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