Hong Kong stocks rise as oil-price surge boosts PetroChina and CNOOC
Country Garden is the biggest winner of the day, rising 5.7pc, while PetroChina and other energy producers climb after a Libyan pipeline explosion pushed crude oil to its highest level since mid-2015
Hong Kong stocks rose on Wednesday when trading resumed after the Christmas break, as a rally in oil producers countered losses in smartphone suppliers.
The Hang Seng Index advanced almost 0.1 per cent to 29,597.66. The Hang Seng China Enterprises Index, or H-share gauge, fell 0.3 per cent. The mainland’s equity benchmark fell as insurance shares slipped.
The MSCI Asia Pacific Index lost 0.23 per cent during the past two days while the Hong Kong market was shut.
Property developer Country Garden rose 5.7 per cent to HK$14.16, emerging as the biggest winner of the day. China Resources Land also gained 1.8 per cent to HK$22.55.
Kenny Tang Sing Hing, vice-chairman and executive director of Jun Yang Securities, said mainland developers are gaining because the rental housing market in China is presenting business opportunities.
Gordan Tsui, managing director at Hantec Pacific, said investors are also bullish on the growth potential of mainland developers in the first quarter of 2018.
“Property developers can drive the indices higher in the coming months,” he said, “After the significant correction we just went through, investors are optimistic about the market future.”
A new partnership with HNA Group Co propelled China Construction Bank Corporation to as much as HK$7.19 a share, breaching a two-year record high. CCB ended the day at HK$7.10 a share.
PetroChina Company, the nation’s biggest oil producer, rose 0.5 per cent and CNOOC advanced 1.8 per cent to HK$11.28. Crude oil surged above US$59 a barrel, its highest level since mid-2015, after a pipeline explosion in Libya.
AAC Technologies Holdings, which derives almost half of its sales from Apple, tumbled 3.6 per cent to HK$137.30.
Sunny Optical Technology Group Co, a supplier of optical products to smartphone makers including Huawei Technologies Co and ZTE Corporation, sank by 4.6 per cent to HK$94.9.
Shares in Apple and its suppliers started falling earlier this week after a report by Taiwan’s Economic Daily and comments from some analysts suggested the iPhone X demand could come in below expectations in the first quarter.
Tang said the fatigue shown by these component makers could persist in the short term.
“But there is no structural change in this line of business. In the new year, cellphone makers are still
competing to improve the specifications of their phones. These stocks will come around in the long term,” he said.
Tang said the market was lacking a clear direction on Wednesday because many traders were still on holiday.
In the mainland, the Shanghai Composite Index slipped 0.9 per cent to 3275.78, while the CSI 300 Index of big-cap shares retreated 1.5 per cent to 3,991.21.