(Updates with midday level, stock moves, comments)
HONG KONG, June 20 (Reuters) - Profit-taking in technology-linked stocks pressured Hong Kong's main share index on Friday morning after weakness in U.S. markets spurred worries that the recent rally may be overstretched.
Hong Kong's dominant fixed line operator PCCW Ltd dropped 1.94 percent to HK$5.05, tracking a 1.7 percent drop on the tech-laced Nasdaq Composite Index .
The benchmark Hang Seng Index fell 0.56 percent to 9,924.5 points. The index has gained about five percent this month.
Trade was relatively sluggish with HK$4.23 billion (US$542 million) worth of shares changing hands. Losers were leading gainers by about two to one, with 379 shares unchanged.
"The market is getting jittery at this level and there's definitely room for profit-taking," said Herbert Lau, head of research at Celestial Asia Securities, adding that the market was still supported by hopes for an interest rate cut by the U.S. Federal Reserve next week.
Market players are optimistic that an interest rate cut in the United States will stimulate the economy, Hong Kong's second largest trading partner after China.
The mainland's main cellular operators China Mobile Hong Kong Ltd and China Unicom Ltd also fell victim to profit-taking after reporting weak subscriber growth in May due to SARS.
May subscribers grew 1.33 percent over the previous month for China Mobile and 2.21 percent for China Unicom, but traders said the slow growth had already been factored into share prices.
China Mobile shares dipped 0.51 percent to HK$19.50 while China Unicom dropped 0.88 percent to HK$5.60.
Chinese property developer Beijing Capital Land Ltd slid 4.82 percent to HK$1.58, a day after listing on the bourse. Traders were downbeat on the stock on worries that the sector could be overheating in Beijing.
Its peers China Resources Land Ltd and Beijing North Star Co Ltd were off 2.22 percent to HK$0.88 and 0.88 percent to HK$1.12, respectively.
Chinese auto stocks surged on hopes that the strong mainland economy will drive earnings growth. Denway Motors Ltd gained 4.83 percent to HK$3.80 and Qingling Motors Co Ltd rose 3.91 percent to HK$1.33.
Brilliance China Automotive Holdings Ltd edged up 1.62 percent to HK$2.20.
(US$=HK$7.8)