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014517
MDHIAN 9414
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FM HONG KONG
TO IMMEDIATE FCO
TELNO 1970
OF 15094OZ JUNE 89
INFO IMMEDIATE WASHINGTON, PEKING
STATE OF HONG KONG MARKET 15 JUNE 1989
SUMMARY
Top Co Q DIST ?
THE THE HANG SENG INDEX CLOSED 40 POINTS DOWN ON THIN TURNOVER. MONEY MARKET REMAINED STABLE WITH THE HONG KONG DOLLAR EXCHANGE RATE LITTLE CHANGED.
DETAILS
2.
FOLLOWING YESTERDAY'S 25 POINT RISE, THE HANG SENG INDEX DROPPED 17 POINTS IN THE FIRST HOUR OF TRADING. THE INDEX CONTINUED TO TRADE IN A NARROW RANGE THROUGHOUT THE MORNING BEFORE CLOSING AT 2354, WITH A NET DROP OF 26 POINTS FOR THE MORNING. IN THE AFTERNOON THE INDEX FELL FURTHER TO CLOSE AT 2340. THE TOTAL LOSS FOR THE DAY WAS 40 POINTS WITH A TURNOVER OF HKDOLLARS916 MILLION.
3.
THE INDEX EASED IN THIN AND SLUGGISH TRADE ON THE ABSENCE OF CONCRETE DEVELOPMENTS FROM CHINA. BROKERS EXPECTED THAT THE VOLUME OF BUSINESS WOULD DRIFT LOWER. SINCE THE SLOW SUMMER SEASON IS COMING, IT IS EXPECTED THAT TRADING WILL CONTINUE TO BE THIN IN THE NEAR TERM. SINCE THE LAST NORMAL TRADING DAY ON 18 MAY, THE INDEX HAS NOW FALLEN BY SOME 28.6 PERCENT.
4. TRADING IN THE HANG SENG INDEX FUTURES MARKET REMAINED LIGHT. A TOTAL OF 991 CONTRACTS WERE TRADED TODAY. THE JUNE CONTRACT CLOSED AT 2306 WITH A 34-POINT DISCOUNT TO THE SPOT MARKET. THE AUGUST CONTRACT CLOSED AT 2310 WITH A 30-POINT DISCOUNT TO THE SPOT MARKET. THERE WAS NO TRADING IN THE OCTOBER AND THE DECEMBER CONTRACTS, ALTHOUGH THE DISCREPANCY BETWEEN THE BID AND ASK PRICES HAD NARROWED TO 50 POINTS.
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