China Merchants Gain; Airlines, Refiners Up

123jump.com Staff
02 Sep, 2008
New York City

Stocks in Hong Kong rose and in Shanghai fell as crude oil continued its slide for the second day in a row. Airlines and refineries rose and port operator China Merchants added 4.4%. China Merchants Holdings first half profit rose 42% to HK$2.02 billion and revenue rose 18% to HK$3.37 billion. The port operator with locations in Hong Kong and in China reported rising ocean traffic to Asia and to Europe. The company through several ventures control ports that handled 25.1 million containers.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong retail sales rose 13.8% to HK$24.2 billion in July on steady rise in tourist arrival and low unemployment in the city.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index rose 0.65% or 136.15 to 21,042.46, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, increased 0.12% or 14.27 to 11,453.15. In Shanghai trading CSI 300 Index fell 1.03% or 23.76 to 2,285.41.

Daily turnover on main-board was HK$49.4 billion from HK$41.1 billion yesterday.

HK Retail Sales Rise 13.8% in July

The Census and Statistics Department reported on its Web site yesterday that the value of total retail sales rose 13.8% from a year earlier to HK$24.2 billion, and after netting out the effect of price changes the volume of total retail sales increased by 6.6% also in the same month.

C&SD added that the revised estimate of the value of total retail sales gained 11.7% from a year earlier to HK$22.2 billion in June, while the volume of total retail sales increased by 4.1%.

In the first seven months of the year, total retail sales gained 15.6% in value or 8.9% in volume of the same period a year earlier.

In particular, the volume of sales of electrical goods and photographic equipment rose by 22.2%, while sales of motor vehicles and parts advanced 20.1%.

Fuels rose 18.6%, furniture and fixtures edged up 8.6%, miscellaneous consumer goods increased 8.3%, commodities in department stores spiked 8% and miscellaneous durable goods soared 6.7%.

Conversely, the volume of sales of food, alcoholic drink and tobacco and commodities in supermarkets slid 3.1% and 1.4% respectively in July from the same period a year ago.

The volume of retail sales fell 1.8% in the quarter to July on seasonally adjusted basis.

China Introduces Stringent Regulations

Xinhua News Agency reported on its Web site today that the China Securities Regulatory Commission said yesterday fund managers need to make their information release more transparent.

Based on a standard format in the eXtensible Business Reporting Language, information of stock-related funds like periodic results will be regularly publicized on the Commission’s web site starting from January 1 next year.

Also CSRC announced a regulation that will prohibit securities brokers manipulating customer’s account and providing investment counseling.

Under the tightened measures, brokers will not be allowed to issue false and misleading information or make agreements on sharing investment proceeds with customers.

Authorities in China are intensifying efforts to promote sustainable development.

Earnings Review

China Merchants Holdings first half profit rose 42% to HK$2.02 billion and revenue rose 18% to HK$3.37 billion. The port operator with locations in Hong Kong and in China reported rising ocean traffic to Asia and to Europe. The company through several ventures control ports that handled 25.1 million containers.

Gainers & Losers

Hong Kong market averages recovered from losses in the morning session on the back of falling oil prices that helped buoyed airlines and refiners.

CNOOC declined 5.2% after crude oil prices fell to a five-month low at 111 per barrel yesterday as most of the oil installations in the Gulf of Mexico escaped the damage from the Hurricane Gustav. Oil refiner Sinopec gained 3.2%.

Airlines stocks increased. Air China rose 8.7%, China Southern Airlines increased 9.5% and Cathay Pacific soared 3.5%.

HSBC Holdings and China Mobile both added 1%. China Merchants Holdings edged up 4.4% after reporting first half profits rallied 33% to HK$2 billion.

Gold miners fell on a resurgent dollar. Gold miner Zijin Mining lost 6.2% and Lingbao Gold shed 4.2%.

Aluminum Corp of China slid 2.8% and China Resources Power shed 3.6% after Deutsche Bank downgraded it to ""hold"".