Mobile sell-off sends Hong Kong stocks to nine-month low

The benchmark Hang Seng Index fell by 394 points to end the week 8.6 per cent lower at 13,966 - its lowest level since last May. It was the first time this year the index dipped below 14,000. Turnover was a high 13.67 billion Hong Kong dollars (1.77 billion US dollars) as investors bailed out of mainland mobile phone operators China Mobile and China Unicom.

Shares in China Mobile recorded their biggest one-day loss since last April, plunging by 10.47 per cent to 35.9 Hong Kong dollars. Rival company China Unicom suffered its biggest one day loss since June after shedding 11 per cent to 10.1 Hong Kong dollars. Analysts blamed the fall on China Mobile's announcement Wednesday that it was to change its tariff structure introducing lower fees, saying it had spurred a sell-off as investors feared it would damage revenue.

China Unicom announced it would follow suit on Thursday. Friday's total loss puts the Hang Seng Index down 7.48 per cent since the beginning of 2001, making it this year's second worst performing benchmark index in Asia.

Of the other blue chips, property developer Sun Hung Kai lost 1.54 per cent to close at 80 Hong Kong dollars while rival Cheung Kong lost 4.08 per cent to 88.25. Hutchison Whampoa fell 2.21 per cent to 88.50 Hong Kong dollars.

(la/dpa)