Profit-taking in Hong Kong property firms and lingering concerns over possible stagflation in the US sent the Hang Seng Index lower Friday.

The Hang Seng Index fell 260.02 points, or 1.1 percent, to 24, 331.67 after trading between 24,010.48 and 24,370.69 during the session.

Turnover reached 80.15 billion HK dollars (US$10.31 billion), down from 82.39 billion HK dollars (US$10.60 billion) Thursday.

Traders said the market will likely be cautious Monday ahead of HSBC's results, which are scheduled to be disclosed after the market closes.

The Hang Seng Property Sub-index fell 1.9 percent to 31,692.17 after rising 7.4 percent over the last four sessions on expectations of further interest rate cuts in the US and eventually Hong Kong.

Sino Land slid 4.6 percent to 19.98 HK dollars, Henderson Land fell 3 percent to 61.90 HK dollars, and Sun Hung Kai Properties was 2.1 percent lower at 139.00 HK dollars.

HSBC fell 1.9 percent to 120.70 HK dollars. Based on data from Thomson One Analytics, the average forecast for its 2007 net profit from 17 analysts is 141.19 billion HK dollars (US$18.14 billion), or 15 percent higher than 15.79 billion HK dollars (US$2.03 billion) in 2006.

The finance sub-index dropped 290.08 points, or 0.84 percent, to 34,344.38.

The commerce and industry sub-index went down 158.50 points or 1.08 percent to 14,521.89.

The utilities sub-index dropped 313.65 points or 0.73 percent at 42,907.41.

(Xinhua News Agency March 1, 2008)