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HK equities

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HONG KONG: Hong Kong stocks erased sharp early losses to close just above the 8,900 level in a session mainly dictated by index futures movements, brokers said.

The blue chip Hang Seng Index gained 4.66 points to close at 8,900.48, against the day's low of 8,774.97. Turnover edged up to HK$2.84 billion from Friday's adjusted HK$2.73 billion.

"I heard it was mainly day traders trying to break the key 8,800 support level but there was no follow-through selling below that point and short covering emerged to push both the spot and futures market back up," said Boby Ho, a dealing manager at G.K. Goh Securities.

The broader All Ordinaries Index fell 3.55 to 4,371.47.

Players attributed the day's volatility to the approach of August futures expiry, which falls in the middle of next week, and a lack of other trading incentives.

The spot month contract put on 40 to 8,930, against a day's low of 8,740, on volume of 19,800 lots, initial figures showed.

The most active list remained dominated by major bluechips.

HSBC gained 50 cents to HK$100.50 , Cheung Kong eased 30 cents to HK$36.90, while Sun Hung Kai Properties lost 75 cents to HK$52.-Reuter