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Hong Kong stocks finish lower, Tencent leads losers

Published 03/17/2011, 04:21 AM
Updated 03/17/2011, 05:44 AM

HONG KONG, March 17 (Reuters) - Hong Kong stocks finished lower on Thursday, as non-nuclear energy issues outperformed and consumer goods dived on lingering uncertainty over Japan's nuclear situation.

The benchmark Hang Seng Index ended down 1.83 percent at 22,284.43, while the China Enterprises Index lost 1.46 percent.

The Shanghai Composite Index closed down 1.14 percent.

HIGHLIGHTS:

* Tencent Holdings Ltd , China's most valuable Internet company, plunged 10.89 percent on Thursday after reporting its slowest growth in more than three years on Wednesday. However, analysts remained bullish, regarding the profit-taking as correctional.

* Non-nuclear energy stocks continued their bullish trend, bucking downside pressure as China suspended nuclear approvals.

China Longyuan Power Group Corp Ltd , one of China's largest wind power producers, gained 3.2 percent after rising 3.7 percent on Wednesday.

* Espirit Holdings Ltd led losses in the consumer goods sector, losing 4.6 percent on the day, contributing to a 40.99 percent decline on the year so far. Analysts said they anticipated reduced demand on continuing uncertainty in Japan would further hurt the consumer goods sector. French skin care products retailer, L'Occitane International SA lost 3.7 percent after announcing its Japan operations had been hit by power and transport outages.

DAY AHEAD:

Traders will be watching whether the benchmark Hang Seng Index can retake its 200-day moving average, currently at 22,343. The Hang Seng Index closed below the 200-day average for the first time since Sept. 2 last year.

Developments in Japan will also continue to weigh heavily on traders' minds. (Reporting by Clement Tan; Editing by Chris Lewis)

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