Hong Kong stocks hold above 23,000 mark in volatility

Hong Kong stocks cut early losses and stood above the key 23,000 level again by dipping 5.53 points to end a day of volatile trading on Wednesday.

The blue-chip Hang Seng Index fell 53.23 points, or 0.23 percent, to open at 23,066.64 and once climbed out of the negative territory to the day's highest 23,268.45 before losing 230.97 points, or 1 percent, to close the morning session at 22,888.9.

Bargain-hunting investors opted to buy into China's telecommunication shares amid industry restructuring expectations, lifting the index from the day's lowest 22,873.31 shortly after trading was resumed in the afternoon.

The index dipped 5.53 points, or 0.02 percent, to close Wednesday's trading at 23.1114.34.

Turnover fell to 79.77 billion HK dollars (10.23 billion U.S. dollars) from Tuesday's 84.12 billion HK dollars (10.78 billion U.S. dollars).

Market heavyweight HSBC outperformed the index by bouncing 0.25percent to 120.7 HK dollars after it reported an 21 percent increase of net profits attributable to shareholders to 19.13 billion U.S. dollars in 2007 despite its write-down for the subprime mortgage-related assets in the United States.

Another market heavyweight China Mobile, or the country's largest mobile phone operator, recovered 0.53 percent to 114.4 HK dollars amid investors' interests in telecommunication stocks.

China Unicom, another mobile phone operator in the country, jumped 7.46 percent to 17 HK dollars as reports said the company might merge with fixed-line telephone operator China Tietong Telecommunications in the country's industrial restructuring plan.

China Telecom, the country's largest fixed-line telephone company, rose 2.52 percent to 5.7 HK dollars. China Netcom leaped 6.18 percent to 24.05 HK dollars.

Oil companies were mixed. PetroChina, the country's largest oilproducer, skid 0.37 percent to 10.78 HK dollars. CNOOC, China's largest offshore oil company, lost 2.14 percent to 11.86 HK dollars. Sinopec, Asia's largest refiner, stood unchanged at 8.05 HK dollars.

Hong Kong's property sectors also headed towards different directions. SHK Properties, the largest house developer in Hong Kong, slid 0.15 percent to 130.1 HK dollars. Henderson Land fell 1. 89 percent to 57 HK dollars. New World Development lost 2.4 percent to 19.96 HK dollars.

Cheung Kong rebounded 0.89 percent to 113.5 HK dollars. Sino Land added 0.95 percent to 19.12 HK dollars. Hang Lung bounced 0. 73 percent to 27.7 HK dollars.

Hong Kong Exchanges and Clearing Limited, the market's sole operator, pulled off 0.42 percent to 141 HK dollars before it posted its annual report after trading. The company's net profits attributable to shareholders surged 1.45 times to 6.17 billion HK dollars (791 million U.S. dollars) in 2007, according to its post-trading annual report.

Cathay Pacific, the Hong Kong-based airways, rose 0.74 percent to 16.32 HK dollars after it reported a better-than-expected annual results. Its net profit jumped 71.8 percent to a record high of 7.02 billion HK dollars (900 million U.S. dollars) due to strong passenger demand and yields since it acquired another airline Dragonair.

China Enterprise Index, or H-shares, which was composed of 43 companies registered on the Chinese mainland, further weakened 124. 26 points, or 0.96 percent, to 12,847.95 as the A-shares markets on the Chinese mainland narrowed their losses in the afternoon.

China's banking and insurance stocks listed on the Hong Kong Exchange were mixed. ICBC, China's largest lender, remained unchanged at 5.2 HK dollars. Bank of China, the country's second largest bank, gained 0.31 percent to 3.19 HK dollars. China Construction Bank, the third largest bank on the Chinese mainland, slid 0.71 percent to 5.63 HK dollars. China Life, the country's largest life insurer, fell 1.21 percent to 28.65 HK dollars. Ping An rebounded 0.71 percent to 56.4 HK dollars.

Resources and metals were weaker. China Shenhua, the largest coal producer in the country, dropped 2.6 percent to 37.4 HK dollars. China Coal slumped 6.05 percent to 14.9 HK dollars. Angang Steel lost 4.34 percent to 18.94 HK dollars. Maanshan Iron went down 1.75 percent to 4.5 HK dollars. (7.8 HK dollars = 1 U.S. dollars)