Hang Seng Drops 1.4%; China Railways Halts Libya Projects

123jump.com Staff
02 Mar, 2011
New York City

Stocks in China edged lower after rising for four days in a row and the benchmark Hang Seng index fell 1.4%. Airlines and property developers declined and cement makers fell after rising for two days. China Railway Construction dropped after it halted three construction projects.

[R]5:00 PM Hong Kong – Stocks in China edged lower after rising for four days in a row and the benchmark Hang Seng index fell 1.4%. Airlines and property developers declined and cement makers fell after rising for two days. China Railway Construction dropped after it halted three construction projects.[/R]

Stocks in China and Hong Kong fell sharply as oil price surge in international trading and protests intensify in Iran and political tensions escalate in the Middle East.

Saudi Arabia benchmark stock index plunged 6.8% on Tuesday.

U.S. Defense Secretary Robert Gates confirmed that two ships and 400 Marines are dispatched to the Mediterranean Sea near Libya to conduct “humanitarian relief” and “evacuations.”

The Shanghai Composite Index fell 5.11 or 0.2% to 2,931.81 after rising five days in a row and the CSI 300 Index fell 0.4% to 3,243.30.

Hang Seng Index declined 1.8% to 22,983.38 and the China Enterprise Index that tracks China mainland companies declined 1.4%.

Stock Movers

Airlines declined after crude oil prices gained. Cathay Pacific Airways Ltd declined 2.6% to HK17.86. In Shanghai trading, Air China Ltd declined 2.1% to 11.65 yuan and China Southern Airlines Co dropped 2.1% to 8.65 yuan. China Eastern Airlines Corp declined 1.5%.

Cement makers declined after rising for three days in a row. In Hong Kong trading Anhui Conch Cement Co Ltd decreased 2%.

Casino companies traded lower in Hong Kong after U.S. opened corruption investigation on Las Vegas Sands Ltd, the parent of Sands China Ltd.

SJM Holdings Ltd decreased 3% and Wynn Macau Ltd declined 0.65%.

China linked companies in Hong Kong trading declined. China Railway Construction Corp declined 7.5% to HK$8.10 after the company confirmed that it halted production on three projects in Libya and evacuated its staff.

Changjiang Securities Co. decreased 3.2% to 13,10 yuan after the brokerage firm confirmed the sale of new shares on March 4 that are expected to be priced at 12.65 yuan or more.

China Resources Land Ltd decreased 1.4% to HK$12.50 and China Overseas Land & Investment Ltd dropped 1.2% to HK$13.10.

Foreign Engineering and Construction Co increased 2.2% to 31.15 yuan after the company won a contract to build aluminum plant in Iran that may cost as much as $1.1 billion or 7.2 billion yuan.