HK stocks fall 2.29% in dramatic volatility

HONG KONG -- Investors eyeing different directions wrestled with each other in Hong Kong stock market here Thursday, sending the blue-chip Hang Seng Index into one of its dramatic single-day turnarounds.

Hong Kong stocks advanced 306.68 points, or 1.27 percent, to open at 24,396.85 and extended its gains to 744.85 points, or 3.09 percent, to close Thursday's morning session at 24,835.02.

But pessimistic sell-off investors intensified their strength after the index surged 876 points to intra-day peak 24,966.17 and dominated during the last hour of trading in the afternoon, blowing the index off 550.9 points, or 2.29 percent, to close at 23,539.27.

Sell-off orders mushroomed in the last hour of trading as French banking giant Societe Generale said Thursday that a single trader was responsible for racking up a massive 4.9 billion euro ( 7.15 billion U.S. dollar) in losses.

Turnover dropped slightly to 142.4 billion HK dollars (18.26 billion U.S. dollars from Tuesday's 156.35 billion HK dollars (20.04 billion U.S. dollars).

Among the 43 components of the benchmark Hang Seng Index, losers outnumbered gains seven to 35, with Bank of China staying unchanged.

Market heavyweight HSBC, Hong Kong's largest bank, once jumped to 119 HK dollars but reversed into falling track towards closing, down 0.69 percent to 115.4 HK dollars, dampening the index by 25. 27 points alone.

China Mobile, the market's largest stock measured by capitalization and the country's largest mobile phone operator, was under heavy sell-off orders during the last an hour of trading, down 3.49 percent to 116.1 HK dollars, shattering the index by 111. 61 points alone.

Oil sectors were weaker. PetroChina, the country's largest oil producer, weakened 3.19 percent to 10.94 HK dollars. CNOOC, China's largest offshore oil company, lost 3.75 percent to 10.78 HK dollars. Sinopec, Asia's largest oil refiner, fell 6.33 percent to8.43 HK dollars.

Hong Kong Exchanges and Clearing Ltd., the market's sole operator, rose 4.32 percent to 174.6 HK dollars amid unconfirmed reports that the Chinese mainland would probably launch the so- called "through-train" to let individual investors on the mainland invest directly in Hong Kong stock market.

Most of Hong Kong's property companies fell. Cheung Kong, one of Hong Kong's largest house developers controlled by tycoon Li Ka- shing, lost 6 percent to 122.2 HK dollars. SHK Properties dropped 2.39 percent to 151.2 HK dollars. Henderson Land moved down 3.1 percent to 67.2 HK dollars. New World Development sank 4.56 percent to 23.05 HK dollars. Sino Land slid 3.54 percent to 24.5 HK dollars.

Hang Lung Property outperformed the market by gaining 1.36 percent to 29.9 HK dollars.

China Enterprise Index or H-shares, which tracks 43 Hong Kong- listed shares in the Chinese mainland, also reversed its early gains into losses, down 346.33 points, or 2.61 percent, to 12,933.2.

China Netcom, the largest fixed-line telephone operator in the country, rose 4.83 percent to 22.8 HK dollars amid reports that the state-assets commission of China would restructure the telecommunication industry.

China's banking and insurance companies listed in Hong Kong were lower. China Life, the largest life insurer in the country, fell 3.29 percent to 30.9 HK dollars. Ping An, China's second largest insurer, plunged 4.14 percent to 62.55 HK dollars. ICBC, China's largest lender, retreated 2.24 percent to 4.81 HK dollars.Bank of China, the second largest bank in the country, stood unchanged at 3.33 HK dollars. CCB, the country's third largest bank, lost 2.42 percent to 5.64 HK dollars. Bank of Communicationsinched down 0.45 percent to 8.86 HK dollars. China Merchants Bank dipped 0.53 percent to 28.15 HK dollars. (7.8 HK dollars = 1 U.S. dollars)