The Hang Seng Index was at 21,956 at press time, continuing its downslide with a 2.2% loss, with turnover volume reaching HKD 29 bln. The real estate sector plummeted 3.2% to 25,974 amid a rising mortgage interest rate trend in Hong Kong.

Though the US Federal Reserve maintained a benchmark interest rate in spite of inflation concerns, the company's banks based in Hong Kong raised mortgage rates, knocking down the whole real estate sector. The company continued its decline for its fifth consecutive trading day, reaching its lowest price, HKD 103.7 per share, in the past nine months. It was at HKD 105.9 at press time, continuing its decline which had reached 4.4%, with turnover volume of 6.74 mln shares.

Merrill Lynch has maintained a 'Buy' rating for real estate stocks, giving a target price of HKD 179.3 to the company, while Citigroup has cut target prices for the company to HKD 105.33, maintaining a 'Sell' rating for it.

Source: www.aastocks.com

Date: 27 Jun 2008

CN01/RZ/MZ/AR/KM