Hong Kong stocks fall 3.7 per cent in early trading

Business Materials 31 October 2008 08:35 (UTC +04:00)

Hong Kong stocks fell 3.7 per cent in early trading Friday on profit-taking after two days of double digit gains, dpa reported.

The blue-chip Hang Seng index lost 525 points in the first hour after opening, dropping to 13,804 points.

Analysts blamed the fall on profit-taking after three consecutive days of gains which has seen the index bounce back by 23 per cent after recording one of its biggest day losses Monday.

This week has been one of the most volatile in the Hang Seng's history.

On Monday, the index sank by 12.7 per cent and then rebounded by 14.35 per cent Tuesday and another 13 per cent on Thursday on the back of interest rate cuts by the US Federal Reserve.

The Hang Seng Index has lost almost two third of its value since October last year when it reached a peak of almost 32,000 points.