Hang Seng Rebounds 1.8%, AIA Net Up 54%; China Cement Makers Rise

Devan Biswas
25 Feb, 2011
New York City

Stocks in Shanghai edged lower but in Hong Kong soared 1.8%. Crude oil decline lifted trading sentiment in China region. Banks, property developers and oil refiners closed higher in Hong Kong. AIA Group Ltd reported 2010 net surged 54% on higher investment income.

[R]5:00 PM Hong Kong – Stocks in Shanghai edged lower but in Hong Kong gained. Crude oil decline lifted trading sentiment in China region. Banks, property developers and oil refiners closed higher in Hong Kong. AIA Group Ltd reported 2010 net surged 54% on higher investment income.[/R]

The benchmark indexes in Shanghai edged lower and international crude oil futures declined. The pledge from Saudi Arabia and West African nations to increase supplies to meet any shortfall from Libya lowered the oil price at close.

The International Energy Agency said that the rebellion in Libya may not have impacted oil production as much as feared earlier. The agency controlled by western nations said it will release oil from its stockpiles to offset any shortfall from production cut in Libya.

The Shanghai Composite Index declined 0.04 to 2,878.57 and the CSI 300 Index increased 0.2% to 3,197.62.

Hang Seng index added 411.33 or 1.8% to close at 23,012.37.

Cement companies rose after government reiterated its pledge to build 10 million low income new homes in the first quarter, according to a research report published by a local firm and highlighted on Bloomberg News.

AIA Group Ltd, the Asia based insurance giant reported 54% jump in net annual net. The insurer said 2010 operating profit before tax was $2.1 billion compared to 1.8 billion a year ago.

The higher profit was driven by investment gains and the strength in the new business. In the year new premium rose 10% and new business value increased 22% to $667 million.

The third largest Asian insurance company is still controlled by the U.S. government controlled AIG and is listed on the Hong Kong stock exchange.

The profit in the second half was $1.6 billion compared to $788 million in the period a year ago.

Stock Movers

AIA Group Ltd rose 5.7%% in Hong Kong trading to HK$22.30.

Anhui Conch Cement Co. surged 6.2% to 34.25 yuan and Huaxin Cement Co. increased daily limit of 10% to 39.01 yuan.

Beijing SuperMap Software Co. daily limit of 10% to 31.08 yuan after Citic Securities lifted its rating on the stock to “buy” from “hold.”

GRINM Semiconductor Materials Co. rose 4.7% to 17.02 yuan after the parent Central Research Institute for Nonferrous Metals in looking to restructure the company.

Hunan Medale Hometextile Co. gained 2% to 38.51 yuan after the textile maker said 2010 net rose 15% from a year ago to 101.7 million yuan.

Hong Kong property developers closed higher. Hang Lung Properties gained 4.3% to HK$32.65 and China Resource Land added 3.6% to HK$12.52.

Cheung Kong Holding added 2.8% to HK$119.90 and Henderson Land increased 1.8% to HK$47.90.

Jiangxi Copper Co. added 2% to 41.10 yuan after the company said its annual tax rate will decline to 15% form 25% for the next three years after it won the approval as “high-tech” company from a provincial government.

Oil refiners gained in Hong Kong trading. Sinopec added 1.6% to HK$10.38 and it agreed to acquire 15% stake in Australia based LNG venture run by Origin Energy and ConocoPhillips.

Wharf Holdings declined 0.2% to HK$49.25.