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Petroleum industry

Hang Seng Index Reaches New 4.5-Year High as Esprit and CNOOC Surge

Strategic Insights

— 1 min read

The Hang Seng Index reached a new 4.5-year high on Friday, buoyed by a strong rally in Esprit Holdings and CNOOC. Apparel wholesaler Esprit touched an intraday high of $63 on a rising euro, with the counter ending the day 4.89% higher at a record $62.15. CNOOC also performed well, rising 1.68% to $6.05 on rocketing oil prices. The benchmark index closed 0.04% higher, or 5.75 points, at 15,450.95, with shares worth $22.55 billion changing hands.

Key Takeaways:

  • The Hang Seng Index reached a new 4.5-year high, closing 0.04% higher at 15,450.95.
  • Esprit Holdings rose 4.89% to a record high of $62.15 on strong buying, driven by a rising euro.
  • CNOOC climbed 1.68% to $6.05 on rising oil prices, contributing to the rally in Hong Kong oil stocks.
  • PetroChina, Sinopec, and other petroleum stocks also rose, with Citigroup raising its target prices for the companies.
  • Investors shifted focus to sectoral consolidation, with Kenny Tang Sing-hing, an associate director at Tung Tai Securities, stating that "the market is now flooded with liquidity."
  • Trading giant Li & Fung was the worst index performer, falling 4.07% to $16.50 after announcing a US$124 million acquisition.
  • Shares of mainland gold miner Zijin Mining surged 10.3% to $1.93 after posting a 37% rise in interim net profit to $330.9 million.

Statistics:

  • The value of shares traded reached $22.55 billion on Friday.
  • Total trading volume for the day was 5.75 points, representing a 0.04% increase in the benchmark index.
  • Esprit Holdings' intraday high reached $63, with a corresponding gain of 4.89% to $62.15.
  • CNOOC rose 1.68% to $6.05 on rising oil prices, contributing to the rally in Hong Kong oil stocks.
  • PetroChina, Sinopec, and other petroleum stocks rose significantly on Citigroup's target price increases.
  • Shares of mainland gold miner Zijin Mining surged 10.3% to $1.93, following a 37% rise in interim net profit to $330.9 million.

Sources:

  • South China Morning Post
  • The Standard
  • Tung Tai Securities
  • Citigroup
  • Zijin Mining

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