HONG KONG, Jul. 6, 2009 (Xinhua News Agency) -- Hong Kong stocks sank 223.99 points, or 1.23 percent to close at 17,979.41 on Monday, with banking stocks contributing the most to the decline.
The benchmark Hang Seng Index once lost 306 points to 17,897 in early session after a low opening, but it retook the lost ground and ended 0.1 percent higher by midday. The upward move lost steam in the afternoon due to lack of any substantial support.
Turnover was 54.21 billion HK dollars, slightly down from Friday's 54.29 HK dollars.
HSBC, which accounts for the largest weighting of the Hang Seng Index, dropped 1.09 percent to close 63.3 HK dollars. China's largest commercial bank the ICBC lost 1.69 percent to 5.25 HK dollars and the country's leading mortgage lender CCB retreated 2. 52 percent to 5.8 HK dollars, while China's largest foreign exchange bank BOC was down 2.43 percent to 3.61 HK dollars.
However, BOC's Hong Kong branch registered 1.69 percent rise in share price on Monday as it was mandated as the sole clearing bank in the city to handle cross-border yuan trade with several major cities in the Chinese mainland.
Among other financial stocks, China Life, the nation's largest insurer, climbed 0.34 percent to 29.2 HK dollars after Credit Suisse raised its rating on the stock from "neutral" to " outperform" amid hopes of better-than-expected half-year earnings.
Heavyweight China Mobile fell 1.37 percent to 75.4 HK dollars, lining up as the second most powerful player only after HSBC (NYSE:HBC) in dragging down the market.
Oil stocks were mostly down following overnight falls in crude futures in New York. Light, sweet crude for August delivery fell 2. 58 U.S. dollars, or 3.7 percent, to settle at 66.73 dollars a barrel on the New York Mercantile Exchange, after earlier touching a month-low of 66. 50 dollars.
PetroChina plunged 2.23 percent to 8.34 HK dollars and Sinopec (NYSE:SNP) slid 0.5 percent to 5.93 HK dollars. Offshore producer CNOOC sank 2.24 percent to 9.17 HK dollars.
Local property stocks put on mix performances, with Cheung Kong down 0.8 percent to 86.45 HK dollars, Henderson Land down 0.11 percent and Hang Lung up 0.63 percent.
By comparison, Hong Kong-listed mainland property companies staged rather robust performances, market observers said.
