Commodities Surge in China; CITS IPO

123jump.com Staff
20 Jul, 2009
New York City

Commodities and shipping linked stocks rallied. Earnings optimism and brokerage recommendation of Hong Kong property stocks helped benchmark indexes. China International Travel Service Corp filed its public offering prospectus.

[R]7:00 PM Hong Kong, 7:00 AM New York – Commodities and shipping linked stocks rallied. Earnings optimism and brokerage recommendation of Hong Kong property stocks helped benchmark indexes. China International Travel Service Corp filed its public offering prospectus.[/R]

Stocks in Hong Kong and Shanghai rallied as earnings optimism lifted commodities, banking and real estate stocks. Copper, coal and aluminum linked stocks surged for the second day in a row.

The Hang Seng index in Hong Kong increased 696.71 or 3.70% to 19,502.37, CSI 300 index in China higher 71.31 or 2.03% to 3,591.12.

China International Travel Services filed public offering to raise capital as early as this month. The largest travel agent company and controlled by the government will sell 220 million shares at 220 million shares. China Securities is the sole underwriter of the offering.

Gainers & Losers

Jiangxi Copper soared more than 8% to 43.90 yuan or 8% to HK$14.88 after the commodities related stocks gained. China Shenhua Energy Co increased 5.4% to 36.16 yuan and Aluminum Company of China Ltd surged 10% to 16.57 yuan.

Shipping company rallied on the back of commodities and sector related stocks. China Cosco increased 7.4% to 17.49 yuan and China Shipping surged 9.2% to 16.58 yuan.

Real estate developers declined after bank regulators tighten the loan requirements for second homes and raised the reserve ratio to cover the loans losses.

Poly Real Estate Group decreased 2% to 28.62 yuan and China Vanke increased 1.8% to 11.70 yuan. Gemdale Corporation and Oceanwide Real Estate lost 1.7% and 1.4% respectively.

Ping An Insurance Company increased 1.5% to 60.80 yuan and surged 10.4% to HK$65.60 and China Life Insurance surged 8% to 32.40 yuan after the industry regulator said first half industry premium increased 6.6% and net surged to 26.1 billion yuan. The news was first reported by Bloomberg News.

Alibaba.com Ltd surged 13% to HK$15.98 on market rumors and ahead of earnings.

Galaxy Enetertainment Group surged 14% to HK$2.25 and Melco International Development increased 6.1% to HK$4.72. Several local and international media speculated that Las Vegas Sands operated Macau casino may file stock offering in Hong Kong as early as next month.

Asian Markets Review

The Hang Seng index in Hong Kong increased 696.71 or 3.70% to 19,502.37 and CSI 300 index in China higher 71.31 or 2.03% to 3,591.12. ASX 200 index in Australia increased 49.50 or 1.24% to 4,050.30. The FTSE Bursa KL Composite index in Malaysia closed higher 18.35 or 1.64% to 1,139.25. The Tokyo market was closed today.

The Kospi Index in South Korea increased 38.41 or 2.67% to close at 1,478.51. SET index in Thailand closed higher 17.56 or 2.95% to 613.67. The Sensex index in India increased 446.09 or 3.03% to 15,191.01. The market of Indonesia was closed today.