Profit-taking dominated trading on Asian markets on Wednesday as investors sought to consolidate their positions following sharp advances at the beginning of the week, dealers said. Thai shares plunged 9.5 per cent on heavy sellings as investors sought to take advantage of Monday's 12 per cent gain. In Hong Kong, share prices slumped 2.1 per cent on continued profit-taking, despite an easing of interbank interest rates. Japanese share prices closed 0.8 per cent lower, hit by profit-taking among leading international blue chips after recent gains.Dealers said sentiment was hurt by sharp falls of Hong Kong shares on London market as well as a decision by leading developer Sun Hung Kai Properties Ltd to cut the price of units in a luxury residential project by 33 per cent. The key Hang Seng index lost 222.90 points to close at 10,302.61, the second consecutive decline following the sharp gains posted on Monday, when the index shot up by more than 14 per cent, or 1,326.24 points.
Lennon Chan, sales directorat Tai Fook Securities, said, "some retail investors are still hanging on to the hefty gains on Monday while institutions would not buy aggressively at this level."
However, steady foreign funds' inflow and easier interbank offered rates provided underlying support to the market, dealers said. Japanese share prices closed 0.8 per cent lower, hit by profit-taking among leading international blue chips after recent gains, brokers said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
