Metals and Oil Lift HK Stocks

123jump.com Staff
12 Feb, 2008
New York City

In a subdued trading in Hong Kong, stocks recovered as oil and metal prices gained in the region. Oil added 2% and copper prices increased as worries mounted that continued weather related disruptions in China may prolong. Foreign exchange reserves increased $7.2 billion to nearly $160 billion at the end of January, according to HK Monetary Authority. PetroChina and CNOOC gained 2.5% and Aluminum Company of China added 2%. Jiangxi Copper surged 4%.

[R]6:00Am New York, 6:00PM Hong-Kong – In subdued trading stocks recovered on rising metals and oil prices. Foreign reserves increase to $160 billion.[/R]

Stocks in Hong Kong rose in cautious trading led by resurgent oil and rising commodity prices as metal production in China remains disrupted on weather conditions. Trading volumes also remained depressed as the China A-share market remains closed.

Market Sentiment

In Hong Kong trading the benchmark Hang Seng Index advanced 1.4% or 305.56 to 22,921.67, and the China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, climbed 1.6 %, or 206.09 to 12,736.69.

Daily turnover on main-board was HK$67.2 billion compared to HK$76.4 billion yesterday.

Forex Reserves Rise

The Hong Kong Monetary Authority announced on its website yesterday that the country’s official foreign currency reserve assets reached $159.9 billion at the end of January.

According the authority, including unsettled forward contracts foreign currency reserve assets also stood at $159.9 billion from $152.7 billion at the end of December.

“The $7.2 billion increase in settled foreign currency assets in the month of January was due mainly to the purchase of foreign currencies with Hong Kong dollars and an increase in Certificates of Indebtedness, reflecting the seasonal demand for banknotes around the Lunar New Year,” said HKMA.

Cumulative foreign currency reserve assets at $159.9 billion represents 38% of Hong Kong dollar M3 money supply.

China and Indonesia trade volumes Increase

China People’s Daily online reported today Indonesian ambassador to China Sudrajat said that trade volumes between Indonesia and China rose 30% to $25 billion exceeding the target of $20 billion set for 2008.


Gainers and Losers

Energy and commodity stocks gained on rising prices of crude oil and metals.

Crude oil for March delivery rose 2% to $93.59 per barrel and copper futures gained to $3,599 per pound. Energy stocks PetroChina and CNOOC Limited gained 2.8% and 2.4% respectively.

Aluminum Corp of China advanced 2.1% to HK$11.82 and Jiangxi Copper jumped 3.5 % to HK$14.80 among commodity stocks.

New Media soared 111.7% from its IPO price at HK$1.44 after the company raised HK$87.61 million in Hong Kong.

China Mobile Limited, the country’s biggest mobile telecommunications company, also rose by 1.8% to HK$1140.70, and HSBC Holdings gained 1% to HK$110.30.

Insurer Ping An however slumped 0.3% to HK$54.05 after brokerage Goldman Sachs slashed its rating on the stock from “buy” to “neutral”.

Company News

The Standard online edition reported today that Cheung Kong Holdings will sell Rmb8 billion luxury residential project in Beijing in the middle of the year as prices of high-end accommodation rise. The entire project will be developed in five phases until 2013.

The first phase, with 400 villas, semi-detached and detached houses will be completed in 2010 and presales will be launched before the Olympics in August.