Resource Stocks Drag Hong Kong Index

123jump.com Staff
15 Jun, 2009
New York City

Hong Kong stocks declined on a weakness in metals and mining sector. Shanghai closed higher. Foreign direct investment in China fell 18% in May. The yuan declined in Shanghai trading.

[R]7:00 PM Hong Kong, 7:00 AM New York – Hong Kong stocks declined on a weakness in metals and mining sector. Shanghai closed higher. Foreign direct investment in China fell 18% in May. The yuan declined in Shanghai trading.[/R]

The stocks in China region closed mixed after fourteen weeks of rally. Mining and financial stocks led the downturn in Hong Kong shares but Shanghai stocks closed higher.

Hang Seng index in Hong Kong decreased 390.72 or 2.07% closed to 18,498.96, CSI 300 index in China higher 59.91 or 2.06% closed to 2,966.19.

The Commerce ministry in Beijing said that foreign direct investment fell 17.8% in May after dropping 22% in April. The yuan closed at 6.84 to a dollar from 6.74.

Gainers & Losers

Mining and metals makers declined sharply as metals fell after G-8 ministers meeting last weekend.

Aluminum Corporation of China Limited declined 4.5% to HK$8.30, Zijin Mining Group fell 2% to HK$7.07 and Jiangxi Copper Company Limited dropped 4.5% to HK$13.74.

PetroChina Company Limited decreased 3.3% to HK$8.89, CNOOC Limited dropped 3.3% to HK$10.48 and China Petroleum & Chemical Corporation closed down 3% to HK$5.70.

China Petroleum denied the Sunday Times report that it had bid for Addax Petroleum Corp for 4.8 billion pounds, according to Bloomberg News.

Poly (Hong Kong) Investments Ltd plunged 8.9% to HK$3.39 after it increased its share offering size to 460 million from 350 million shares.

Ping An Insurance Group closed down 2.7% to HK$57.45 on its first day of trading since June 8, when it announced to increase its stake in the Shenzhen Development Bank to 30%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 96.15 or 0.95% to 10,039.67, Hang Seng index in Hong Kong decreased 390.72 or 2.07% to 18,498.96, CSI 300 index in China closed higher 59.91 or 2.06% to 2,966.19. ASX 200 index in Australia decreased 30.50 or 0.75% to 4,031.70. The KL Composite index in Malaysia edged higher 1.02 or 0.09% to 1,091.17.

The Kospi Index in South Korea decreased 16.17 or 1.13% to close at 1,412.42.SET index in Thailand closed lower 16.63 or 2.65% to 611.92 and JSE Index in Indonesia decreased 21.07 or 1.01 % closed to 2,069.88. The Sensex index in India decreased 362.42 or 2.38% to 14,875.52.