Stocks rise, commodities advance
Updated: 2010-10-20 06:58
(HK Edition)
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Hong Kong stocks rose, driving up the Hang Seng Index (HSI) for the first time in three days, as increases in oil and metal prices boosted commodity producers higher and a brokerage upgrade boosted Citic Pacific Ltd.
The HSI rose 1.3 percent to 23,763.73 at the close, snapping a two-day, 1.6 percent drop. Almost eight stocks advanced for each one that fell on the 45-member gauge. The Hang Seng China Enterprises Index gained 1.1 percent to 13,573.60.
"The market sentiment is pretty positive," said Steve Tse, a Hong Kong-based research manager at BEA Union Investment. The market retreated Monday, but the "positive momentum hasn't finished," he said.
Jiangxi Copper rose 6.3 percent to HK$22.90. Zijin Mining Group Co advanced 2.3 percent to HK$7.63, while Aluminum Corp of China Ltd increased 1.9 percent to HK$8.17.
Citic Pacific surged 7.4 percent to HK$21.30, the biggest gain on the HSI. Citigroup raised its rating on the stock and said it was becoming more bullish on the company's Sino Iron project in western Australia. Citigroup also increased its share-price estimate to HK$24 from HK$15.90.
The London Metal Exchange Index of six metals including aluminum and copper rose 0.5 percent Monday, while crude oil for November delivery increased 2.3 percent in New York to $83.08 a barrel, the highest settlement since October 6.
Cnooc rose 1.1 percent to HK$16.34. PetroChina Co climbed 1.6 percent to HK$10.04.
A measure of materials companies had the second-steepest gain among the Hang Seng Composite Index's 11 industry groups.
The HSI increased 3.6 percent last week as commodity producers climbed and as lenders gained after Chinese bank loans increased.
Shares on the gauge trade at an average 15.2 times estimated earnings compared with about 17.2 times at the start of the year.
Futures on the HSI increased 1.4 percent to 23,810.
Bloomberg
(HK Edition 10/20/2010 page3)