Stocks fall as commodities decline on inflation
Updated: 2011-05-13 05:45
(HK Edition)
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Hong Kong stocks fell as commodity prices dropped over concern the central government would keep raising interest rates to curb inflation.
The HSI fell 0.9 percent to 23073.76 at the close of trading. All but six stocks fell in the 45-member gauge.
Futures on the HSI dropped 1.2 percent to 22865. The Hang Seng China Enterprises Index declined 1.3 percent to 12795.95.
China's consumer prices rose 5.3 percent last month, exceeding the government's full-year target of 4 percent and the 5.2 percent median forecast in a Bloomberg News survey of 30 economists. The inflation rate in March was 5.4 percent.
The nation's inflation is spreading beyond food, signaling Premier Wen Jiabao's strategy of quarter-point interest-rate increases every two months has yet to contain prices.
Cnooc decreased 1.4 percent to HK$18.36. Jiangxi Copper declined 2.2 percent to HK$24.10. Aluminum Corp of China Ltd sank 2 percent to HK$6.89.
China Resources Land slumped 3.5 percent to HK$13.20. Hang Lung Properties Ltd slipped 2.6 percent to HK$33.40. Agile Property Holdings Ltd lost 1.6 percent to HK$12.10.
The HSI Volatility Index rose 3.5 percent to 17.74, indicating options traders expect a swing of 5.1 percent in the HSI in the next 30 days.
Bloomberg
(HK Edition 05/13/2011 page3)