Hong Kong Market rises 0.56%

Headline indices of the Hong Kong share market closed higher on Wednesday, 27 March 2019, as bargain hunters stepped into market on hopes for more stimulus after weak industrial profit data after data showed the sharpest contraction in China's industrial profits since late 2011 in the January to February 2019 period. However, market gains were limited on concerns over the global economy while attention turns to the resumption of China-US trade talks this week.At closing bell, the Hang Seng Index advanced 161.34 points or 0.56% to 28,728.25. The Hang Seng China Enterprises Index added 73.63 points or 0.66% to 11,305.36 Turnover increased to HK$93.3 billion from HK$88.3 billion on Tuesday.

China's industrial profits tumbled 14% in the January to February period, extending a 1.9% decrease in December, according to data released by the National Bureau of Statistics. Factory-gate prices in automobile, oil refining, steel and chemical all declined in the two month period from a year ago, dropping between 0.4% and 2.5%, dragging on profits of these sectors, the statistics bureau said. The combined decrease in profit shaved the headline profit growth by 14.2%age points, it said. The government releases combined economic data for the months of January and February as the timing of the Lunar New Year holiday shifts every year. Stripping the impact of the Lunar New Year holidays, total profits came in largely the same as last year, said Zhu Hong, an economist with the statistics bureau. China's producer-price index edged up 0.1% in the first two months from a year earlier, official data showed.

Blue chips were mixed. HSBC (00005) nudged down 0.1% to HK$63.85. Tencent (00700) put on 0.9% to HK$354.6. HKEX (00388) was also up 0.9% to HK$268.2. China Mobile (00941) softened 0.5% to HK$80.3. AIA (01299) gained 0.9% to HK$76.35.

Shares of crude oil majors were higher after oil supply tightened due to the lower exports from Venezuela and falling crude inventory in the US, with CNOOC (00883) jumping 3.9% to HK$14.36. PetroChina (00857) rose 0.6% to HK$5.11. But Sinopec (00386) nudged down 0.2% to HK$6.3. Oilfield service providers saw strong buying orders. Honghua Group (00196) soared 6.5% to HK$0.66. Sinopec Kantons (00934) gained 3.7% to HK$3.66. China Oilfield Services (02883) shot up 3.5% to HK$8.1. Sinopec Oilfield Service (01033) gained 3.5% to HK$0.88.

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