Hong Kong stocks went on a roller-coaster ride yesterday, with the Hang Seng Index tumbling more than 500 points at one stage. But it recouped most of the losses on the back of a rebound in Shanghai and ended 0.61 percent lower.The HSI dropped 132.68 points to close at 21,620.2 after testing an intraday low of 21,130.9, following a weak performance on Wall Street last Friday.
"The more than 2 percent rise in the mainland bourse offset the effect of the US market," said Cinda International research director Castor Pang Wai-sun.
The Shanghai Composite Index finished the day 2.7 percent higher at 3,076.65.
In Hong Kong, main-board turnover amounted to HK$65.4 billion.
The China Enterprises Index, which lists leading mainland firms, fell 0.22 percent to 12,741.88.
Exporter Li & Fung (0494) fell 3.65 percent to HK$31.70 on weak consumer sentiment in the United States.
"Market volatility is expected to be high this week due to the mixed stock performance in China and the United States," said Linus Yip Sheung-chi, strategist at First Shanghai Securities. "Local property developers may face greater selling pressure under government attempts to tighten home prices."
Yip added that oil producers are set to give up their gains of the past few weeks as oil price growth eases.
The Hang Seng Index will hover between 21,100 and 22,000 this week, Yip forecasts.
Heavyweight HSBC (0005) fell 0.98 percent to HK$86.35. Developer Cheung Kong (0001) slid 1.35 percent to HK$98.95 and Sun Hung Kai Properties (0016) fell 1.59 percent to HK$117.80. PetroChina (0857) retreated 1.25 percent to HK$9.48 while CNOOC (0883) dropped 1.17 percent to HK$11.88.
Mainland lenders and insurers outperformed the HSI. China Life Insurance (2628) climbed 1.5 percent to HK$37.10 while Industrial and Commercial Bank of China (1398) rose 0.16 percent to HK$6.30.
