Temat: Hong Kong Stocks Rise; Petrochina Leads Commodity Shares...

Hong Kong Stocks Rise; Petrochina Leads Commodity Shares Higher

By Ting Ting Ng

Jan. 4 (Bloomberg) -- Hong Kong stocks advanced, driving the benchmark index to its best gain in four weeks, led by commodity shares after gold and oil prices rose to records.

Petrochina Co., China's largest oil producer, surged the most in 12 weeks. Zijin Mining Group Co., owner of China's biggest gold mine, jumped after Goldman, Sachs & Co. raised its share-price target.

``Investors are buying commodity stocks amid rising commodity prices,'' said Jacky Choi, who helps manage more than $6 billion at Value Partners Ltd. He declined to say whether he was buying or selling those shares. ``Lower interest rates and the slowdown in the U.S. economy may spur investors to accumulate commodities.''

The Hang Seng Index added 632.41, or 2.4 percent, to close at 27,519.69, its biggest gain since Dec. 11. All stocks advanced on the 43-member benchmark, which is up 0.5 percent in this holiday-shortened week. January futures added 2.4 percent to 27,663.

The Hang Seng China Enterprises Index, which tracks 43 ``H shares'' of Chinese companies rose 2.8 percent to 15,903.40.

PetroChina, the most active stock today by value with HK$5.6 billion of shares changing hands, added 98 cents, or 7.4 percent, to HK$14.18, its biggest gain since Oct. 15. Goldman raised its recommendation on the stock to ``buy'' from ``neutral'' because recent declines had made the stock attractive, analysts including Kelvin Koh wrote in a report today. Before today the shares had lost 32 percent from a record HK$19.9 on Nov. 1.

Oil, Gold

Cnooc Ltd., China's biggest offshore oil producer, climbed 74 cents, or 5.6 percent, to HK$13.86, its largest advance since Nov. 20. China Petroleum & Chemical Corp., the nation's biggest oil refiner, advanced 56 cents, or 5.1 percent, to HK$11.66.

Crude oil futures in New York recently traded at $99.19 in after-hours trading. They rose as high as $100.09 yesterday.

Zijin Mining soared 90 cents, or 7.2 percent, to HK$13.44, extending a three-day, 7.6 percent rally. A target on the stock was raised 11 percent to HK$15 at Goldman on record bullion prices.

Zhaojin Mining Industry Company Ltd., which had the biggest initial public offering by a Chinese gold miner, also rose, gaining HK$2.95, or 8.5 percent, to HK$37.55. The stock climbed 30 percent in the past eight days.

Gold for immediate delivery recently traded at $861.92 an ounce after earlier rising to a record $868.89 yesterday.

Li & Fung Ltd., a supplier to Wal-Mart Stores Inc., advanced 95 cents, or almost 3.2 percent, to HK$31.00 after demand for U.S. manufactured goods rose more than forecast in November.

Yue Yuen Industrial Holdings Ltd., the world's biggest maker of athletic footwear for brands such as Nike Inc., added 75 cents, or 2.7 percent, to HK$28.25.

The following stocks either rose or fell. Stocks symbols are in brackets after company names.

China National Materials Co. (1893 HK): The world's largest provider of cement-making equipment gained 94 cents, or almost 9.1 percent, to HK$11.28 after it raised an extra HK$629 million ($81 million) by selling more shares in its initial public offering in Hong Kong to cover excess demand. The stock has soared 86 percent since it went public on Dec. 20.

Hang Fung Gold Technology Ltd. (870 HK): A Hong Kong-based jeweler boasting the world's most expensive washroom, featuring a solid gold toilet, said it plans to sell a metric ton of gold this month. Shares jumped 52 cents, or 26 percent, to HK$2.51, the highest since June 29, 2000.

Tsingtao Brewery Co. (168 HK): The Chinese beer company partly owned by Anheuser-Busch Cos., surged HK$2.90, or 9.9 percent, to HK$32.20 after gaining 9.3 percent yesterday. The company said late last night that it will pay 171 million yuan ($23.5 million) to buy out its partner in a mainland venture.

To contact the reporter on this story: Ting Ting Ng in Hong Kong at tng9@bloomberg.net
Last Updated: January 4, 2008 03:58 EST

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