Refiners, Airlines Fall

123jump.com Staff
06 May, 2008
New York City

Hong Kong stock indexes ended fractionally up in volatile trading as rising oil prices dragged stocks of airlines and oil refiners. Hang Seng Index rose 0.30% to 26,262.13, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, increased 0.18% to 14,651.29. In Shanghai trade, CSI 300 Index fell 1.1% to 4,010.89. Crude oil futures reached a record high in Shanghai and Hong Kong trading dragging stocks of refineries and airlines.

[R]6:00AM New York, 6:00PM Hong Kong - Hutchinson Whampoa and China Mobile lift Hang Seng index. Refiners and airlines fall on rising crude oil price.[/R]

Hong Kong stock indexes ended fractionally up in volatile trading as rising oil prices adversely impacted on airlines and oil refiners.

In Hong Kong trading Hang Seng Index rose 0.30% or 78.18 at 26,262.13, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, increased 0.18% or 26.01 at 14,651.29.

In Shanghai trade, CSI 300 Index fell 1.11% or 44.89 at 4,010.89

Daily turnover on main-board was HK$69.74 billion compared to HK$74.03 billion yesterday.

Copper futures fall in Shanghai trading

China Daily reported today that copper futures traded around Rmb100 lower than the near-month futures contract recently on sufficient local supplies and high world prices.

Copper climbed the most in more than two weeks in London on May 2 at $8,410 a ton on supply disruptions in Chile. Chile''s state-run Codelco said on Sunday it halted output at its El Teniente mine after a one-day restart as striking contract workers attacked buses carrying company employees.

Copper for July delivery fell as much as Rmb960, or 1.5%, at Rmb 64,420 on the Shanghai Futures Exchange and closed at Rmb 64,580. China''s March refined copper imports fell 7% to 126,421 tons from the previous month and analysts believe it may fall further.

In Shanghai trading, zinc declined 1.8% to Rmb 17,965 a ton and aluminum fell 0.8% to Rmb18, 780 a ton.

Sinopec to increase capacity by 15% by next September

Sinopec plans to increase the capacity of its Zhenhai refinery by 15% next September to boost the company''s fuel and chemical production. The production capacity of the Zhenhai refinery will reach 23 million tons per year.

Gainers & Losers

Hutchinson Whampoa advanced 3.32% and China Mobile rose 1.41% lifted the benchmark Hang Seng index. PetroChina rose 0.17% to HK$12.12. Goldman Sachs earlier downgraded the stock to ""sell"" from ""buy"" on widening refining losses as oil prices surge.

Front month futures of crude oil rose above $120 a barrel dragging oil refiners and airlines. Sinopec declined 2.18%.

Airlines Air China shed 3.21% to HK$6.33, China Eastern fell 1.55% at HK$3.80, China Southern slid 3.16% to HK$5.52 and Cathay Pacific plunged 1.29% to HK$16.84.

Shares of Sinofert Holdings Ltd increased 2.5% to HK$5.69 after the company forecasted that revenue and profit will rise 20% this year on rising fertilizer prices.

Alibaba.com rebounded from yesterday’s slump to rise 1.05% at HK$15.40 ahead of its quarterly earnings this year.

Nine Dragons Paper advanced 9.2% to HK$9.94 after China''s largest paperboard producer said it will invest US$22.8 million in a 60% stake in a paper production firm in Vietnam.

Mongolia Energy Corp Ltd gained 7.9% to HK$11.16 after it said it will expand its concession areas in Western Mongolia for coal, ferrous and non-ferrous resources to about 329,008 hectares from 66,000 hectares.

Angang Steel also rose 2.7% to HK$20.80 on reports it is in talks with ArcelorMittal.