Hong Kong stocks gain for the fourth straight week as oil giants PetroChina, Sinopec surge
- The Hang Seng Index ended the week 2.2 per cent higher, after the US presidential hopefuls went head-to-head in a TV debate
- Health care stocks dropped after the first death of a volunteer in global vaccine trials was reported in Brazil
Hong Kong stocks rallied for a fourth straight week as the final presidential debate wrapped up in the US and ahead of a major political event in China where policymakers will decide the country’s economic blueprint for the next five years.
The Hang Seng Index advanced 0.5 per cent to 24,918.78 on Friday, up 2.2 per cent this week.
The CSI300 Index, which tracks the biggest companies in Shanghai and Shenzhen, lost 1.3 per cent to 4,718.49. It ended the week 1.5 per cent lower, snapping a three-week rally. The Shanghai Composite Index edged down 1 per cent to 3,278, translating to a 1.8 per cent decline for the whole week.
In Hong Kong, oil companies led the gains after Russian President Vladimir Putin said the nation does not see a need to alter the existing deal between major global oil producers to cut output amid slumping demand brought about by Covid-19. Sinopec and CNOOC advanced more than 7 per cent, and PetroChina climbed 6.9 per cent,
“The market is still optimistic about the short-term outlook, although [traders] are still concerned about uncertainties around the US stimulus package and presidential election,” said Castor Pang, head of research at investment services firm Core Pacific-Yamaichi. “There are some large IPOs coming, investors believe the market has not reached its peak.”