Indexes in Shanghai, HK Surge 2% Plus

Mayank Mehta
03 Feb, 2010
New York City

Stocks in Hong Kong closed higher tracking gains in the U.S. Cnooc Ltd surged after it indicated as much as 27% increase in crude oil and natural gas production. Metallurgical Corp of China Ltd. may take as much as 5% for $200 million in Australia based Resourcehouse.

[R]9:00 PM Hong Kong, China – Stocks in Hong Kong closed higher tracking gains in the U.S. Cnooc Ltd surged after it indicated as much as 27% increase in crude oil and natural gas production. Metallurgical Corp of China Ltd. may take as much as 5% for $200 million in Australia based Resourcehouse.[/R]

Hong Kong stocks gained following an increase in U.S. home sales contracts.

Hong Kong stocks increased after Esprit Holdings Ltd said first half sales increased 9.5% and net income fell 5.2% to HK$2.7 billion. Esprit surged 8%.

Cnooc Ltd surged 9.4% to HK$12.32 after it indicated current year energy production increase of 28% to between 275 million barrels and 290 million barrels equivalent of oil.

Tencent Holdings Ltd increased 6% after 21st Century Business Herald in Hong Kong quoted China Mobile Ltd chairman saying that the telecom operator is open to taking a stake in the company.

Hang Seng index in Hong Kong increased 449.90 or 2.22% to 20,722.08, and CSI 300 index in China higher 84.53 or 2.69% to 3,230.72.

The Financial Times in London said that Chinese regulators have tightened monetary policy and restricted public offering from companies in the real estate and industrial sectors. China is looking to curb lending and restrict new investment in commercial and housing real estate sectors.

The newspaper noted that at least 34 companies have been asked to curb their plans to raise additional capital or cancel their offering.

Shanghai Movers

China Petroleum & Chemical Corporation added 2.2% to 11.34 yuan after the oil refiner was upgraded to “hold” from “reduce” at BNP Paribas.

Metallurgical Corporation of China Ltd climbed 1.0% to 4.92 yuan after the construction company plans to pay in cash $200 million for as much as 5% stake in Australia based Resourcehouse ahead of the planned Hong Kong listing.

Clive Palmer controlled iron ore and thermal coal company is looking to raise as much as $3 billion not all in the public offering according to an interview published in Australian.

The company owns China First project in Queensland and has iron ore deposits and oil and gas assets in Western Australia. The mining company also controls oil and gas reserves in Papua New Guinea.

PetroChina Company Limited added 1.7% to 13.04 yuan after the oil company was upgraded to “buy” from “hold” at BNP Paribas.

HK Movers

China Oilfield Services Limited surged 10.2% to HK$10.88 after the company was upgraded to “hold” from “reduce” at BNP Paribas SA.

CNOOC Limited surged 9.4% to HK$12.32 after the offshore oil explorer forecast that its crude oil and natural gas output in 2010 may increase by 22% to 27% year on year, with some large projects expecting to enter operation within the year.