Shares prices closed lower in cautious trade, with Wall Street's overnight performance seen as a mere short-term rebound rather than indicating a genuine improvement in sentiment, dealers said.

Share prices closed the morning higher following Wall Street's rebound overnight and better-than-expected Hong Kong unemployment data, with further support from interest generated by HSBC ahead of its going ex-div and by TVB after rival tom.com withdrew a buy-in plan for ATV, dealers said.