Inflation Worries Drives HK Trading

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

Hong Kong Stock indexes fell on resurgent fears of credit market losses that led financial stocks lower. Hang Seng Index fell 1.9% or 267.07 at 24,311.69, and China Enterprises Index fell 1.67% or 223.66 to 13,196.22. Rising commodities prices and weak dollar fueled the inflation worries in the region. China business climate index fell on severe weather condition in the first quarter.

[R]6:00AM New York, 6:00PM Hong Kong – Stocks in Hong Kong fell and in Shanghai rose as credit markets worried persisted. Commodities and crude oil rallied on weak dollar and strong demand outlook.[/R]

Hong Kong Stock indexes fell on resurgent fears of credit market losses that led financial stocks lower.

In Hong Kong trading Hang Seng Index fell 1.9% or 267.07 at 24,311.69, and China Enterprises Index of Hong Kong-listed mainland firms, or H shares, fell 1.67% or 223.66 to 13,196.22.

In Shanghai trading, the CSI 300 rose 1.18% or 45.24 at 3,891.06.

Daily turnover on main board was HK$87.74 billion compared with HK$99.47 billion yesterday.

China’s business index falls in first quarter

China’s National Bureau of Statistics reported yesterday that the country’s business climate index, which gauges corporate performance of 19,500 firms, fell in the first quarter on severe weather conditions.

According to NBS the index was 7.4 points lower than the fourth quarter and 3.5 points lower than a year earlier at 136.2 points.

The index of the information technology and software sectors was 159.0 points, 1 point lower than a year ago, followed by the wholesale and retail trade, which dropped by the same margin to 153.2 points.

Index for industrial activities declined to 133.3, construction to 136.7 and property and hotel sectors declined to 132.2 points from the previous quarter.

Also large, medium and small-sized enterprises indexes fell to 154.7, 125.2 and 115.5 respectively.

World Bank contends China to withstand global turmoil

Xinhua News Agency reported that World Bank President Robert Zoellick said yesterday at a press conference that China is likely to continue its strong growth in the long-term despite the global credit crunch.

According to the Bank, skyrocketing food prices are not a temporary phenomenon and will persist for several years.

Gainers & Losers

Financial stocks fell on resurgent fears of credit market losses. HSBC declined 0.53% at HK$131.10, ICBC dropped 0.68% to HK$5.86, while China Construction Bank declined 1.69% to HK$6.40.

China Mobile edged down 2.02% to HK$125.80

Commodity and energy stocks however gained as crude oil for March delivery rose 2.7% to $109.09. Zijin Mining gained 7.5% at HK$8.60 after the company began the sale of domestic stock that could raise $1.4 billion for expansion

Sinopec Corp dropped 4.3% to HK$7.29 on rising oil prices as the government keeps a lid on fuel and petroleum products prices.

COSCO Pacific plunged 6.3% after Deutsche Bank downgraded the company to “hold” from “buy”, citing weaknesses in the company’s leasing business.

Jilin Qifeng Chemical Fiber Co Ltd fell 6.8% after warning profit will decline markedly on rising raw material costs and falling demand for acrylic fibre products on the domestic market.

Singamas Container Holdings Ltd increased 8.9% to HK$2.33 after the world''s No. 2 shipping container maker doubled its second-half earnings on record volume and higher container prices.