Commods gain boosts Hang Seng
Source: Bloomberg News |
May 25, 2011, Wednesday
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Print Edition
Print Edition
HONG Kong's Hang Seng Index rose for the fourth day in five, as commodity companies gained after Goldman Sachs Group Inc suggested buying oil, copper and zinc, reversing earlier declines on concern global growth is slowing.
Cnooc Ltd, China's biggest offshore oil producer, advanced 1.1 percent, and Jiangxi Copper Co, the nation's largest supplier of the metal, added 1.4 percent. Esprit Holdings Ltd, a global fashion retailer, climbed 1.9 percent after closing Monday at a seven-year low. Li & Fung Ltd, the biggest supplier to retailers, slid 2.7 percent after reports signaled economic growth is slowing in the United States and Europe.
The Hang Seng Index rose 0.1 percent to 22,730.78 at the close, after falling as much as 0.4 percent. Some 22 stocks advanced while 19 declined on the 45-member gauge. The Hang Seng China Enterprises Index of Chinese companies' H shares climbed 0.5 percent to 12,680.99.
"There is some bargain hunting right now, but it's not sufficient to move the market back to an upward trend," said Ben Kwong, chief operating officer at KGI Asia Ltd. Macroeconomic issues may be giving "investors an excuse to stay away from the equity market for the time being."
Cnooc gained 1.1 percent to HK$18.06 (US$2.32). PetroChina Co, China's largest oil company, rose 0.6 percent to HK$10.32. Jiangxi Copper advanced 1.4 percent to HK$24.65.
The recent market correction brought commodity prices more "in-line with near-term fundamentals and targets," Goldman Sachs said in a report yesterday. The brokerage recommended investors establish "fresh longs" in oil, copper and zinc.
Esprit, which got 83 percent of its fiscal 2010 revenue from Europe, rose 1.9 percent to HK$29.70, the second-biggest gain. The stock tumbled 4 percent on Monday to its lowest close since 2004 as concern increased about Greece's sovereign debt crisis and after US-based Gap Inc cut its profit forecast.
Li & Fung dropped 2.7 percent to HK$17.38, and Cosco Pacific Ltd, which operates container facilities at Piraeus, Greece's largest port, sank 2.5 percent to HK$14.92.
Cnooc Ltd, China's biggest offshore oil producer, advanced 1.1 percent, and Jiangxi Copper Co, the nation's largest supplier of the metal, added 1.4 percent. Esprit Holdings Ltd, a global fashion retailer, climbed 1.9 percent after closing Monday at a seven-year low. Li & Fung Ltd, the biggest supplier to retailers, slid 2.7 percent after reports signaled economic growth is slowing in the United States and Europe.
The Hang Seng Index rose 0.1 percent to 22,730.78 at the close, after falling as much as 0.4 percent. Some 22 stocks advanced while 19 declined on the 45-member gauge. The Hang Seng China Enterprises Index of Chinese companies' H shares climbed 0.5 percent to 12,680.99.
"There is some bargain hunting right now, but it's not sufficient to move the market back to an upward trend," said Ben Kwong, chief operating officer at KGI Asia Ltd. Macroeconomic issues may be giving "investors an excuse to stay away from the equity market for the time being."
Cnooc gained 1.1 percent to HK$18.06 (US$2.32). PetroChina Co, China's largest oil company, rose 0.6 percent to HK$10.32. Jiangxi Copper advanced 1.4 percent to HK$24.65.
The recent market correction brought commodity prices more "in-line with near-term fundamentals and targets," Goldman Sachs said in a report yesterday. The brokerage recommended investors establish "fresh longs" in oil, copper and zinc.
Esprit, which got 83 percent of its fiscal 2010 revenue from Europe, rose 1.9 percent to HK$29.70, the second-biggest gain. The stock tumbled 4 percent on Monday to its lowest close since 2004 as concern increased about Greece's sovereign debt crisis and after US-based Gap Inc cut its profit forecast.
Li & Fung dropped 2.7 percent to HK$17.38, and Cosco Pacific Ltd, which operates container facilities at Piraeus, Greece's largest port, sank 2.5 percent to HK$14.92.
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