The stock market in Hong Kong opened sharply lower on Monday morning, taking cues from the U.S markets where the major indices ended in negative territory as investors preferred to take profits following a rally over the past few trading sessions. Commodity prices declined sharply on Friday on worries that the plan unveiled by the Obama Administration might get delayed or take a longer time to unfold.
On Friday, the Dow closed down 148.38 points or 1.9% at 7,776.18, the Nasdaq closed down 41.80 points or 2.6% percent at 1,545.20 and the S&P 500 closed down 16.92 points or 2% at 816.
In Asian trading, crude oil is currently down $0.93 at $51.45 a barrel, in electronic trading. Light sweet crude for May delivery closed at $52.34 per barrel on the New York Mercantile Exchange on Friday, down $1.96 a barrel.
The benchmark Hang Seng Index in Hong Kong opened Monday's session at 13,893, sharply lower than previous close at 14,119, and is presently trading lower at 13,821, down 2.11% or 298.53 points. Almost all the stocks are trading lower, as concerns about the revival of the global economy resurfaced again. Resources stocks and financial stocks are the major losers in early trading. Profit taking is also being witnessed in the markets after a strong rally in the past few trading sessions.
Among resource stocks, Aluminum Corporation of China, or Chalco, is down 9.85%, CNOOC is falling 3.72%, and Petrochina is losing 3.01%.
Financial stocks are the major losers in early trading. ICBC bank is losing 3.82%, Bank of China is declining 1.82% and Bank of Hong Kong is down 2.26%. HSBC Holdings is falling 1.26%, Hang Seng Bank is decreasing 1.32%, Bank of East Asia is moving down 2.19%, CCB is declining 3.42% and Bank of Communications is falling 2.27%.
Insurance stocks are also trading weaker. While Ping An is down 2.24%, China Life is losing 2.29%.
China-related stocks are declining. China Mercantile Holdings is down 5.31%, Sinopec Corp. is losing 0.40%, China Overseas is declining 1.13%, and China Resources is falling 1.48%.
Telecom stocks are trading weaker. Hutchison Whimpoa is down 3.23%, China Mobile is losing 0.57% and Tencent Holdings is edging down 0.17%.
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