HK and Shanghai Stocks Rise, Sinopec Earnings

123jump.com Staff
07 Apr, 2008
New York City

Stocks in Hong Kong closed higher after a week of losses on a rise in commodities and earnings from Sinopec. In Hong Kong trading Hang Seng Index rose 1.29% or 314.13 at 24,578.76, and China Enterprises Index of Hong Kong-listed mainland companies, or H shares, edged up 2.15% or 282.31 at 13,419.88.Sinopec stock increased 2% after it reported 2007 net income rise of 5.5% on revenue gain of 13.4% on higher gas and oil revenue. In Shanghai trading CSI 300 advanced 5.34% or 195.12 at 3,845.82.

[R]6:00 AM New York, 6:00 PM Hong Kong – Sinopec profit increased 5.5% in 2007 on 13% rise in sales.[/R]

Stocks in Hong Kong closed higher after a week of losses on a rise in commodities and earnings from Sinopec.

Market sentiment

In Hong Kong trading Hang Seng Index rose 1.29% or 314.13 at 24,578.76, and China Enterprises Index of Hong Kong-listed mainland companies, or H shares, edged up 2.15% or 282.31 at 13,419.88.

In Shanghai trading CSI 300 advanced 5.34% or 195.12 at 3,845.82.

Daily turnover on main-board was HK$99.47 billion compared to HK$91.50 billion on Thursday last week when the market closed for the Ching Ming holiday.

Sinopec earnings rise 5.5% on 13.4% increase in sales

Sinopec reported today that its net profit increased 5.5% to Rmb 56.53 billion in 2007 on 13.4% rise in sales to Rmb1.2 trillion and proposed to pay a full-year dividend of Rmb0.165 per share in cash.

Newly added proven reserve of oil and gas reached 647 million barrels of oil equivalent, while crude oil output advanced 2.3% to 290 million barrels and natural gas increased 10.2% at 282.6 billion cubic feet in 2007.


Hong Kong likely to be affected by an unresolved credit crisis

Xinhua News Agency reported yesterday that the Hong Kong Monetary Authority’s Chief Executive Joseph Yam said on a radio program on Saturday that using monetary policy will not benefit the community as raising interest rates will lead to higher production costs and mortgage payment.

Yam added that the U.S. dollar link has brought more benefits than disadvantages in the past 25 years and noted that if the U.S. slowdown and credit market turmoil remains unresolved, Hong Kong and the Chinese mainland economy will be affected. He also said the current investment environment is very volatile.

In addition, Yam explained that banks are asked not to offer mortgages that do not require repayment for loan principal in the first few years in a bid to avoid subprime mortgage problem in Hong Kong.

China sovereign funds buy stake in Total

China Daily reported at the weekend that a Chinese state-owned fund has acquired 1.6% stake in France based oil and gas company Total SA.

Finance industry tops best paid list

CRIENGLISH.com reported that Chinese graduates in the financial sector were the best paid last year, with an average annual income of Rmb 58,388 in 2007, followed by the IT and the medical industries.

According to the report''s regional breakdown, the annual income for Shanghai graduates declined to Rmb 37,007.

Experts believe that the phenomenon is linked to last year''s stock market boom and the industry''s tradition to pay higher salaries.

Gainers & Losers

Financial and resource stocks led as a weaker dollar lifted metal prices. Copper for delivery in three months rose to 0.6% to $8,720 a metric ton.

Zijin Mining Group gained 11.6% to HK$8.00 after it said it was launching a Shanghai initial public offer of shares that could raise $1.4 billion.

Also Jiangxi Copper jumped 4.2% to HK$16.40, while China Shenhua jumped 6.2% to HK$35.00 on expectations that coal exports will recover.

Datang Power edged up 5.9% to HK$4.99 and China Coal Energy Corp gained 5.2% to HK$15.68 as a result.

Sinopec rose 2% at HK$7.62 in volatile trade as quarterly earnings fell below analyst forecasts. According to Citigroup, the oil refiners’ net profit at Rmb 56.5 billion was 7% below its projections.

Ping An Insurance increased 5% to HK$66.35 after news reports that the company has set up a Rmb20 billion private equity unit to invest in pre-initial public offering financing deals.

Realty stock Sung Hung Kai fell 1.35% to HK$131.40 after a report from The Standard news said that March transaction volumes dropped 50% compared to January and sales slipped between 3% and 5%.

China Mobile gained 3.7%.