HONG KONG, Sept 21: Hong Kong share prices tumbled on Monday, with the key index slumping nearly 4 per cent, following sharp falls in Tokyo and uncertainties over a US presidential scandal. The benchmark Hang Seng index fell 275.73 points, or 3.7 per cent, closing at 7,170.23. On Friday, the index had lost 130.61 points.Turnover amounted to 3.21 billion Hong Kong dollars (US dollars 411 million), down from Friday's 4.39 billion Hong Kong dollars (US dollars 562 million). Brokers said shares fell in reaction to the slump on the Tokyo Stock Exchange, where the key index hit a new 12-year low.
There are also uncertainties about the US political scene and economy, with concerns growing that president Bill Clinton could face impeachment, said Tom Levethorpe, sales trading director at Indosuez WI Carr Securities.
Investors were also worried about the labor problems in the territory after Hongkong Telecommunications Ltd, Hong Kong's largest private employer, moved to cut the wages because of the economicdownturn.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
