Hong Kong market gives up gains to end lower

HONG KONG - Hong Kong's stock market fell Thursday, dragged down by selling in oil and resources companies.

The blue-chip Hang Seng Index lost 46.83 points, or 0.2 percent, to close at 23,087.72 after weakening later in the session.

Many investors decided to cash in profits after the market's recent gains, but analysts saw the downturn as a pause in a general, short-term upswing.

"Hong Kong's market has shot up 2,000 points in a short period, so we need a consolidation," said Linus Yip, a strategist at First Shanghai Securities. "I think we may retrace, but overall the market is still strong."

Oil issues fell along with lower crude prices, though airlines gained.

Upstream oil producer CNOOC lost 2.2 percent to $11.66. PetroChina and China Petroleum & Chemical Corp, or Sinopec, also were down.

Meanwhile, carrier China Southern soared 7.9 percent to $3.7. Cathay Pacific was up 1.3 percent to $15.84.

Chinese coal companies slid amid reports that Beijing will tighten controls on coal prices. China Shenhua fell 4.9 percent, and China Coal slipped 3.6 percent, and Yanzhou Coal was off 4.5 percent.

With commodity prices falling, gold and aluminum stocks also dropped.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.