Hong Kong shares close lower on fresh US worries; banks

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Share prices closed lower as fresh worriesabout the financial sector and weaker-than-expected US economicdata prompted investors to lock in profits ahead of the weekend.
China coal miners extended yesterday's losses, with Shenhua Energyslumping more than 6.7 pct, after mainland authorities said theywill tighten controls on spot coal prices.
Utilities stocks outperformed as investors sought out safe havensamid global market uncertainty.
The Hang Seng index closed down 347.01 points or 1.50 pct at22,740.71, off a low of 22,542.08 and high of 22,843.20.
Turnover was 61.39 bln hkd.
For the week, the index gained 866.52 points or 3.96 pct, while forthe year to date it is down 5,071.94 points or 18.2 pct.
'Today's correction was well expected after recent sharp gains,'said Macro Mak, research head at Tai Fook Securities.
'Fundamentals have not changed much. The market will still beaffected by US data, results and China policy leads in the nearterm,' he said.
Whether the market will pick up again and regain the 23,000-pointslevel will depend on factors such as oil price trend and overseasmarket performance, Mak said..
'I expect the market to be volatile next week. It is hard to saywhether the (index) will regain 23,000 as US sub-prime relatedmatters still cloud the market,' he said.
He added that China's Olympic games may not have a significantimpact on share prices.
Dickie Wong, an associate director at Friedmann Pacific Investmentexpects the market to pick up after a mild correction.
He said valuations are still attractive and that investors are alsonot as pessimistic as they had been in the last few months.
'The key index may rise back to 23,700 in a month with the help ofsome encouraging (corporate) results and on hopes of relaxation ofausterity measures in China,' he said.
Wong said the key index should find good support at the 22,000level.
Banks were hit following weak US housing data and NAB's additionalprovisions for credit-market losses.
The US National Association of Realtors announced overnight thatexisting home sales in the country dropped 2.6 pct last month,hitting a 10-year low.
Meanwhile, NAB - Australia's largest bank -- said it has set asideanother 830 mln aud in provisions for its exposure tocollateralised debt obligations, taking its total such provisionsto over one bln aud.