Tuesday, April 21, 2009

Hong Kong Shares Tumbled 3.7%

. Tuesday, April 21, 2009

By stockOzone team

Hong Kong shares fell 3.72 percent by midday Tuesday in a broad-based sell-off while shares in HSBC slumped after Bank of America (NYSE: BAC) reignited concern over credit quality deterioration at global banks.

The other index heavyweight, China Mobile (0941.HK) slid 5.52 percent to HK$70.20 after its first-quarter earnings growth slowed to 5 percent, prompting analysts to lower their earnings forecasts on the world's largest wireless service provider.

JP Morgan cut its 2009 profit estimate by 4.8 percent and that for 2010 by 9 percent to factor in lower usage and revenue-per-user assumptions. Intensifying competition and its rural market thrust is also seen clouding China Mobile's outlook further.

The benchmark Hang Seng Index .HSI ended the morning session down 585.44 points at 15,165.47.

Disclosure: Author does not own any of the stocks discussed here.

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