Deals, Oil Prices Lead Gains in HK

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

In Hong Kong trading the Hang Seng index rose 0.64% or 154.73 at 24,282.04, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, increased 0.82% or 108.80 to 13,330.08. In Shanghai trading CSI 300 Index rose 0.48% or 16.98 at 3,576.20. Daily turnover on main-board was HK$54.49 billion compared with HK$76.7 billion yesterday.

[R]6:00AM New York, 6:00PM Hong Kong - Deals, oil prices lead gains in Hong Kong[/R]

In Hong Kong trading the Hang Seng index rose 0.64% or 154.73 at 24,282.04, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, increased 0.82% or 108.80 to 13,330.08.

In Shanghai trading CSI 300 Index rose 0.48% or 16.98 at 3,576.20.

Daily turnover on main-board was HK$54.49 billion compared with HK$76.7 billion yesterday.

Hong Kong approves short-term fuel surcharge adjustments

Xinhua News Agency reported today that the Civil Aviation Department of the Hong Kong Special Administrative region said yesterday in a press release it has given approval to 13 airlines to either keep or adjust their passenger fuel surcharges.

Market watchers believe that most airlines will raise the surcharges by over 30%.

The aviation department notes that surcharges of most of the short haul flights will rise to HK$171 per passenger from HK$125 per passenger and those for the long haul flights will gain from HK$ 518 per passenger to HK$ 710.

Adjustments were made in line with obtaining aviation fuel prices, the airline operators'' justifications and average charges levied by other airlines.

After the adjustments, short-haul and long haul surcharges are at about 41% and 68% of the average international levels correspondingly.

HK, Dubai sign MOU on finance

Separately, the online edition also reported that the Hong Kong Monetary Authority and the Dubai International Financial Center Authority signed a memorandum of understanding to boost cooperation in finance on May 20.

The MOU creates an overarching framework between the two organizations on cooperation, communication and information sharing in financial development, especially in the development of Islamic finance.

The two organizations will also explore ways to promote cross- border Islamic finance, including the trading of sukuk, or securities that comply with the Islamic law and its investment principles, and other Sharia-compliant financial instruments, including working on the development of payment systems.

According to deputy chief executive of the Monetary Authority Eddie Yue, the development “will enhance the co-operation between the HKMA and the DIFC Authority, particularly in the development of Islamic finance, which in turn will benefit Hong Kong the international financial center.""

Gainers & Losers

Oil and gas producer CNOOC Ltd gained 3.7% after crude oil prices gained 1% to $133.46 on news of further attacks on a pipeline in Nigeria and also on news that the company is mulling an acquisition of Talisman Energy.

Also CNOOC’s affiliate China BlueChemical edged up 6.07% to HK$5.42 after Reuters news reported that it plans to triple production capacity by 2011.

Oil refiner Sinopec surged 0.71% after board chairman of the company Su Shulin said yesterday the company received a subsidy of Rmb7.1 billion in April.

Sun Hung Kai Properties also advanced 1% after Walter Kwok was ousted as chairman of the company and replaced by Kwong Siu-hing.

Other property stocks also gained with Hopson Development rising 7.8% and SOHO China climbing 4.41%.

Shaw Brothers gained 3.39% after the Financial Times reported that China''s Country Garden Holdings agreed to buy a 26% stake for $1.3 billion in the company’s broadcasting unit TVB.

Company news

China Petroleum and Chemical Corp’s board chairman Su Shulin said at the company’s annual shareholder’s meeting yesterday that the government paid Rmb7.1 billion in oil subsidies in April.

In the first quarter of the year, CPCC processed 41.89 million tons of crude oil, increasing 9.57% on the year.