Stocks dip on oil price fears
Updated: 2011-03-08 07:04
(HK Edition)
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Hong Kong stocks declined as crude prices surged amid escalating conflict in Libya, stoking concern that higher fuel costs will dampen the economic recovery.
Cathay Pacific retreated 3.5 percent and Air China lost 3.9 percent. China Eastern Airlines lost 1.7 percent. Cnooc increased 1.5 percent. BaWang International tumbled 5 percent after saying it may record a full-year net loss.
The Hang Seng Index (HSI) slid 0.4 percent to 23313.19 at the close. About four stocks declined for each that advanced on the 45-member gauge. The Hang Seng China Enterprises Index slipped 0.2 percent to 12820.81.
New trading hours took effect at the Hong Kong Stock Exchange Monday, with the market opening 30 minutes earlier. The lunch break was moved forward by 30 minutes to noon and reduced to 90 minutes from two hours. About HK$67.3 billion ($8.64 billion) in shares changed hands on the exchange Monday, compared with about HK$82.1 billion at the same time last week, according to data compiled by Bloomberg.
Futures on the Standard & Poor's 500 Index dropped 0.5 percent Monday. The index slipped 0.7 percent on March 4 in New York as crude oil prices rose to a 29-month high, after fighting in Libya cut crude oil production in the African country by as much as 1 million barrels a day, spurring concern higher fuel prices will crimp US consumer spending.
Mainland consumer stocks gained after the central government said domestic consumption will drive economic growth. Belle gained 0.4 percent to HK$14.24. Tsingtao Brewery rose 0.9 percent to HK$38.50.
Futures on the HSI were unchanged at 23319. The HSI Volatility Index rose 1.1 percent to 19.25.
Bloomberg
(HK Edition 03/08/2011 page3)