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Petroleum industry

Hong Kong Stocks Edge Higher Amid Semiconductor Boom

Strategic Insights

— 1 min read

The Hong Kong stock market shrugged off another record high in crude oil prices and edged higher on Tuesday, with a lot of buying interest focused on second and third-tier stocks. However, this trend is not considered healthy, as investors are trying to find a topic to buy on and the semiconductor sector has been lagging. Semiconductor Manufacturing International Corp (SMIC) led the charge, jumping 13.12% to close at HK$1.81, while fellow mainland chipmaker CSMC Technologies gained 11.32% to 59 cents.

Key Takeaways:

  • SMIC, the most traded stock in value terms, jumped 13.12% to close at HK$1.81, driven by news that it will start to produce high-end chips for Texas Instruments.
  • Fellow mainland chipmaker CSMC Technologies gained 11.32% to 59 cents, following SMIC's lead.
  • Shipping stocks continued to advance amid positive news and expectations on freight rates, underpinning the H-share sector.
  • The Hang Seng Index added 0.38% to 13,321.73, capping the gains as property shares consolidated ahead of Tuesday's land auction.
  • China Resources Enterprise was the top blue-chip performer, gaining 4.29% to $10.95, following a "buy" rating upgrade from Citigroup Smith Barney.
  • Oil producers benefited from the rise, with CNOOC, China Petroleum & Chemical, and PetroChina all gaining between 2.38% and 3.15%.
  • Trading in Chinese enterprises accounted for 26.6% of the total market turnover of $14.1 billion, compared to 24.9% for Hang Seng Index stocks.

Statistics:

  • Hang Seng Index closed at 13,321.73, up 0.38% or 50.16 points.
  • SMIC's turnover was twice that of banking giant HSBC.
  • CNOOC rose 2.98% to HK$4.325, China Petroleum & Chemical added 3.15% to $3.275, and PetroChina finished 2.38% higher at $4.30.
  • China Shipping Container Lines added 7.19% to $3.725, coal and oil carrier China Shipping Development gained 5.76% to $7.35, and Pacific Basin Shipping was up 6.04% at $3.95.
  • Jiangxi Copper rose 4.26% to $4.90 and Aluminum Corp of China gained 2.88% to $5.35.

Sources:

  • Miles Remington, head of sales trading at BNP Paribas Peregrine
  • Anette Jonsson, Bloomberg reporter
  • Citigroup Smith Barney
  • Hong Kong Stock Exchange

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