Shares at two-month high as oil firms rally on OPEC out­put deal

Credit-fu­eled re­cov­ery of smoke­stack in­dus­tries stead­ies main­land econ­omy

China Daily (Hong Kong) - - BUSINESS | MARKETS - By BLOOMBERG

Chi­nese main­land com­pa­nies traded in Hong Kong rose to a nearly two-month high, as oil com­pa­nies ral­lied af­ter OPEC reached a deal and amid op­ti­mism the main­land econ­omy is sta­bi­liz­ing.

The Hang Seng China En­ter­prises In­dex rose 0.6 per­cent at the close. China Oil­field Ser­vices Ltd and PetroChina Co led the gains with jumps of at least 4.7 per­cent, af­ter oil surged 9.3 per­cent in New York. The Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries agreed to re­duce col- lec­tive pro­duc­tion to 32.5 mil­lion bar­rels a day, Ira­nian Oil Min­is­ter Bi­jan Nam­dar Zan­ganeh said in Vi­enna on Wed­nes­day. The Shang­hai Com­pos­ite In­dex gained 0.7 per­cent af­ter data showed China’s of­fi­cial fac­tory gauge climbed to the high­est since July 2014.

“The news was out of ex­pec­ta­tions and had an im­pact on oil plays — but it may not be long last­ing,” said Li­nus Yip, a Hong Kong-based strate­gist at First Shang­hai Se­cu­ri­ties Ltd. “We can see that the main­land econ­omy is be­ing well main­tained at cur­rent lev­els. Mar­kets have a chance to test higher lev­els in De­cem­ber.”

The H-share in­dex capped its big­gest monthly gain since Fe­bru­ary, as a rally by in­sur­ers and bro­ker­ages helped re­verse losses. In­sur­ers jumped amid bets their in­vest­ment re­turns will in­crease with ral­ly­ing main­land mar­kets. The Shang­hai Com­pos­ite In­dex is headed for a rise of more than 8.9 per­cent this quar­ter as the roll­out of prop­erty curbs boosted the lure of eq­ui­ties and as so-called old econ­omy com­pa­nies climbed due to op­ti­mism China’s author­i­ties will lift fis­cal spend­ing to stim­u­late growth.

The Hang Seng China En­ter­prises In­dex rose to 9,892.31, while the Shang­hai Com­pos­ite In­dex traded at 3,273.31.

China’s man­u­fac­tur­ing pur­chas­ing man­agers in­dex rose to 51.7 in Novem- ber, the Na­tional Bureau of Sta­tis­tics said, as a credit-fu­eled re­cov­ery of smoke­stack in­dus­tries helped steady the econ­omy. A Bloomberg sur­vey of econ­o­mists found a me­dian es­ti­mate of 51. The non-man­u­fac­tur­ing PMI was at 54.7 com­pared with 54 in Oc­to­ber. Num­bers higher than 50 in­di­cate im­prov­ing con­di­tions.

The Hang Seng In­dex ad­vanced 0.4 per­cent, with vol­ume that was 41 per­cent more than its 30-day av­er­age, ac­cord­ing to data com­piled by Bloomberg. CT En­vi­ron­men­tal Group Ltd tum­bled 22 per­cent as it re­sumed trad­ing fol­low­ing the com­pany’s re­but­tal to al­le­ga­tions made by short seller Glau­cus Re­search Group. Full­share Hold­ings Ltd sank 11 per­cent on heavy vol­ume amid profit tak­ing af­ter be­ing added to MSCI China In­dex on Wed­nes­day.

QU XING / FOR CHINA DAILY

A re­tail in­vestor checks the stock mar­ket on his mobile phone in Nan­jing, Jiangsu prov­ince.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.