Severe Weather in China Lift Resource Stocks

Mayank Mehta
06 Jan, 2010
New York City

Stocks in Hong Kong and Shanghai increased as investors remained optimistic about economic prospects. Coal and aluminum related stocks gained after record low temperatures in Beijing drove the energy demand higher and disrupted aluminum and coal production.

[R]8:00 AM Hong Kong, China – Stocks in Hong Kong and Shanghai increased as investors remained optimistic about economic prospects. Coal and aluminum related stocks gained after record low temperatures in Beijing drove the energy demand higher and disrupted aluminum and coal production.[/R]

Record low temperatures in Northern China prompted the fears of travel disruptions and higher demand for energy. Beijing reported lowest temperature since 1971 and supply of coal and aluminum is expected to be disrupted for a number of days.

Hang Seng index in Hong Kong increased 137.09 or 0.62% to 22,416.67, and CSI 300 index in China lower 22.31 or 0.63% to 3,541.73. Of the stocks in Hang Seng index, 25 increased and 16 declined and one was unchanged.

Other Movers

China Shenhua Energy Company Limited the coal producer added 1.8% to HK$40.45 and China Coal Energy Company Limited advanced 5.1% to HK$15.86.

China Resources Land Limited the state-controlled property developer dropped 1.0% to HK$17.32.

China Zhongwang Holdings Limited surged 15.2% to HK$8.07 after the maker of aluminum products announced that the independent review conducted by Ernst & Young found no evidence of falsified record as alleged by a newspaper that prompted the review. Separately, Aluminum Company of China revised the prices of aluminum products by 5.7%.

Fushan International Energy Group Limited the coking coal seller climbed 1.0% to HK$8.40.

Hong Kong Exchanges and Clearing Limited the operator of stock market rose 4.8% to HK$147.10 as investors speculated that more mainland companies will offer stocks in Hong Kong. Reuters said Zhongsheng Group and International Mining and Machinery are looking to list in Hong Kong.

New World Development Company Limited decreased 1.7% to HK$15.56 after the developer announces final dividend.

Pacific Basin Shipping Limited the operator of dry-bulk vessels rose 2.1% to HK$6.27.

Yanzhou Coal Mining Company Limited climbed 2.9% to HK$19.62.