Hong Kong stocks eke out gains as investors remain optimistic over US-China trade talks
Oil and gas shares lead the charge amid rising crude prices
Hong Kong markets closed slightly higher on Friday amid optimism of a breakthrough in US-China trade negotiations even as talks entered a second day in Washington.
“The market has stabilised and is somewhat optimistic about the outcome of the US-China trade talks that kicked off yesterday,” said Louis Wong, director at Phillip Securities (Hong Kong).
The benchmark Hang Seng Index inched up 0.3 per cent to 31,047.91, boosted by gains in the oil and gas sector, while the Hang Seng China Enterprises Index rose 0.6 per cent to 12,355.13.
Brent crude oil prices rose to their highest level since November 2014 on Thursday to US$80.50 per barrel, although prices declined slightly to US$79.46 on Friday.
Chinese oil giant PetroChina led the charge, jumping 6.4 per cent to HK$6.51 after announcing plans to produce 9 billion cubic metres more gas by 2020, which involves building 650 additional wells in China’s western Sichuan province. Oil services provider Anton Oilfield Services (Group) jumped 14 per cent to HK$1.39.
Morgan Stanley is of the view that investors should hold on to oil stocks, following some excellent returns by Chinese energy majors.
China Shenhua Energy, the country’s largest coal producer, surged 6.3 per cent to HK$22.00 after it revealed a 21.6 per cent rise in sales on Wednesday.
