Hong Kong stocks surge to 5-month highs after the biggest weekly gain in over a decade as earnings outlook brightens
- Hang Seng Index vaulted after positive corporate earnings and as a series of policy support measures boosted investor confidence
- The stock benchmark is the best performer among the key stock gauges globally this month with an almost 7 per cent gain
The Hang Seng Index rose 2.1 per cent to 17,651.15 at the close, its highest level since November 23, with the 8.8 per cent rally since Monday driving the benchmark for its best week since October 2011. The Hang Seng Tech Index surged 4.6 per cent.
The Shanghai Composite Index added 1.2 per cent, as overseas investors bought a record 22.4 billion yuan (US$3.1 billion) of yuan-denominated stocks through the exchange link programme with Hong Kong.
CNOOC, China’s biggest offshore oil producer, jumped 3.6 per cent to HK$19.68 after registering a 24 per cent rise in first quarter earnings from a year ago, in the latest signs that corporate earnings are recovering.
“We have fine-tuned our numbers following the strong first quarter factoring in better margins,” said Pei Hwa Ho, an analyst at DBS. “Coupled with its steady growth strategy and superior execution, CNOOC is highly regarded as one of the best oil price proxies. We believe the rally, fuelled by optimism over China’s SOE revaluation and rising oil prices, has further to run, particularly with ongoing geopolitical tensions.”
Earlier in the week, better-than-estimated earnings from Hong Kong Exchanges and Clearing and Ping An Insurance added a dose of optimism to the market.
