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HK shares see April gains fade on weak mainland markets

Published 04/29/2011, 04:11 AM
Updated 04/29/2011, 04:12 AM
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HONG KONG, April 30 (Reuters) - Hong Kong shares ended April with only mild gains after a 1.7 percent dip on the week on the back of weak mainland markets, with investors moving into more defensive sectors such as utilities, suggesting further weakness ahead.

The benchmark Hang Seng index ended the day down 0.4 percent at 23,720.8. The China Enterprises Index fell 0.8 percent, led by financials.

On the mainland, the Shanghai Composite ended the day 0.9 percent higher but posted its worst week this year as investors booked profits in banking shares.

HIGHLIGHTS:

* Utilities outperformed in Hong Kong as investors became more defensive and shunned sectors such as energy and materials. Power Assets , previously known as Hong Kong Electric Holdings, rose 1.1 percent while the sub-index of utility stocks was the top performer amongst sector indices this month, up 2 percent.

* Banking shares declined as investors chose to lock in recent gains even after the sector reported first-quarter results. Agricultural Bank of China fell 3.1 percent.

* Hong Kong's first yuan-denominated IPO tumbled as much as 7.8 percent on its trading debut amid a weak market for property counters. Hui Xian , the real estate investment trust controlled by Li Ka-shing, suffered from lacklustre interest from investors who were unimpressed by the low yield on offer. [ID:nL3E7FT03X]

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