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Continued Selling Pressure Called For Hong Kong Bourse

The Hong Kong stock market headed south again on Monday, one session after it had ended the two-day losing streak in which it had stumbled almost 320 points or 1.1 percent. The Hang Seng Index now rests just above the 29,810-point plateau and it's likely to take further damage again on Tuesday.

The global forecast for the Asian markets suggests mild consolidation on weak earnings news and falling crude oil prices. The European markets were slightly higher and the U.S. bourses were slightly lower and the Asian markets are tipped to follow the latter lead.

The Hang Seng finished modestly lower on Monday as losses from the financials and properties were offset by gains from the casinos and a mixed bag from the oil companies.

For the day, the index shed 99.04 points or 0.33 percent to finish at the daily low of 29,810.72 after peaking at 30,280.12.

Among the actives, WH Group plummeted 2.02 percent, while Sands China surged 1.88 percent, Hang Lung Properties plunged 1.78 percent, China Mengniu Dairy tumbled 1.73 percent, Tencent Holdings skidded 1.42 percent, China Petroleum and Chemical (Sinopec) dropped 1.28 percent, Hong Kong & China Gas retreated 1.16 percent, CSPC Pharmaceutical declined 1.01 percent, Sun Hung Kai Properties sank 0.96 percent, AIA Group climbed 0.88 percent, China Life Insurance advanced 0.71 percent, BOC Hong Kong shed 0.71 percent, Galaxy Entertainment perked 0.60 percent, New World Development lost 0.60 percent, China Mobile fell 0.58 percent, Industrial and Commercial Bank of China dipped 0.34 percent, CITIC eased 0.17 percent, CNOOC rose 0.14 percent and Ping An Insurance was down 0.05 percent.

The lead from Wall Street is soft as stocks opened lower on Monday; they made back ground as the day progressed but still finished slightly in the red.

The Dow shed 27.53 points or 0.10 percent to finish at 26,384.77, while the NASDAQ lost 8.15 points or 0.10 percent to 7,976.01 and the S&P 500 fell 1.83 points or 0.06 percent to end at 2,905.58.

The weakness on Wall Street reflected a negative reaction to earnings news from Goldman Sachs (GS) and Citigroup (C), while traders were reluctant to make significant moves ahead of more quarterly results in the coming days.

In economic news, the New York Federal Reserve reported that growth in regional manufacturing activity picked up somewhat in April but remained fairly subdued.

Crude oil futures edged lower on Monday on reports Russia and OPEC might increase production to boost their market share. West Texas Intermediate crude oil futures for May ended down $0.49 or 0.8 percent at $63.40 a barrel.

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