Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

Formal Market Report Number 14

REPORT # 14

 

Hong Kong shares prices fell 1.7 per cent led by China Mobile amid continuing concerns over its earnings outlook, dealers said. They said sentiment was also depressed by Wall Street lackluster performance overnight, which failed to be inspired by the proposed merger between computer giants Hewlett Packard and Compaq.

 

The key Hang Seng Index lost 193.72 points to close at 10943.14 on the turnover of U.S. $733 million.

 

Reference

The cutting has been taken from the report of the Hong Kong Stock Exchange using Hang Seng as its key index measuring the value of shares transacted at the stock exchange

Meanings of difficult words

Concerns                      anxieties
Sentiment                     emotion, attitude
Depressed                    disappointed
Lackluster                    dull, uninspired, spiritless
Inspired                        encouraged, stimulated, motivated
Hang Sang Index          Hong Kong Stock Exchange key index named as Hang Sang Index
Turnover                      total transactions, volume of business
Wall Street                   here it refers to New York Stock Exchange

 

Tendency of the market

The share market of Hong Kongfell 1.7 percent

 

Controlling factors

The movement of the market was under control of two factors:

1. The shares of China Mobile, a giant mobile phone company of Hong Kong came down badly affecting all other shares.

2.         Poor performance and dull conditions at the New York Stock Exchange.

 

Index and turnover

The opening index         1113686
Closing             10943.14
Loss                             (193.72)
Loss in %                     1.7%
Volume of business       US $733 million

 

Explanation

On the day under report Hong Kong Stock Exchange registered a fall of 1.7 percent. One of the factors behind the drop was the lowering of the China Mobile shares against the backdrop of the company poor profit prospects. The fail of the China Mobile was so strong that it brought down the shares across the board. The other cause was the poor performance of the New York Stock Exchange on the day under report leading the Hong Kong Stock Exchange dispirited. It was expected that the merger of two computer giant companies, namely Hewlett Packard and Compaq, will throw the New York Stock Exchange at the higher level but hopes could not be realized. The impact of the Wall Street on the working of the Hong Kong Stock Exchange shows the phenomenon of the world being woven into a global village.

 

The two factors sent the Hang Song index down 193.72 points at 10943.14 at the close of the market with a turnover of $733 million.

 

Summary

The Hong Kong Stock Exchange showed dull conditions shedding 1.7 percent value of the market and closed at 10943.14 losing 193.72 points. The fall was based on the drop in the shares of China Mobile expecting a decline in its profits. The other depressing cause was the poor performance at the New York Stock Exchange overnight.

 

Forecast

The poor earning position of the China Mobile may continue to haunt the stock exchange, but the merger of HP and Compaq may break the dull spell as a delayed impact.

 

 

Related posts:




Leave a Reply

Content Protected Using Blog Protector By: PcDrome. & GeekyCube.