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Reason for HangSeng DROP

http://www.reuters.com/article/hongkongMktRpt/idUSHKG13921420080521

 

 HONG KONG, May 21 (Reuters) - Hong Kong stocks recouped early
losses to close 1.2 percent higher on Wednesday after a sharp
rebound in Shanghai on speculation that Beijing will soon allow
state-set prices for oil products, such as gasoline, to rise.

China's key stock index .SSEC jumped 2.93 percent after
Sinopec (600028.SS: Quote, Profile, Research) leapted its 10 percent daily limit and
PetroChina 601875.SS surged 6.6 percent in Shanghai.

 A raft of speculation -- from Beijing preparing to allow oil
product prices to rise and increasing government subsidies to oil
refiners to loosen windfall taxes -- boosted sentiment on the
sector and helped to lift the markets.
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"I believe global markets have largely completed their latest
round of a rebound and Hong Kong stocks could zig-zag down in the
short-term," said Andrew To, sales director at Tai Fook
Securities.
    
 Tang also said Hong Kong stocks were more likely to trend
down than up in the near future.

  

 

think today's "earthquake" really make alot of ppl feel damn shock.

 

I am NOT surprised by the delayed Sell down.
This is the way BBs create a false sense of bullishnes and Unload upon the publishing of facts.

Those who entered the market last few days, have to brace themselves as China recovers.

 

wah lau, earthquake so many days already now then market react to it? abit slow leh

 

After Shichuan quake, less 50k people using fuel alrdy. Instead, rebuilding is the current main task. They need more metals and sement. Construction coy and developers will be benifited. Health care coy may share some benifits as well.

 

any sign of recovery ? this is really bad.... the dramastic drop causing to drag others...

 

Will this piece of news suggest that China will import more oil from the region than before...this in return will benefit companies that supplies oil to them like SPC and other bigger oil producers and refineries like ExonMobil, Chevron,etc ...

 

Expect MORE bad News to COME!



SHANGHAI,  May  20  (Reuters)-  China  National  Petroleum Corp (CNPC),

China's  top  oil and gas producer, had 1.7 billion yuan ($244 million)

of  direct  economic  losses from last week's devastating earthquake in

southwest China, the official Shanghai Securities News said on Tuesday.



CNPC,  the  parent  of  PetroChina  <0857.HK>  <601857.SS>, had 908 gas

stations,  47  oil  tanks, and 71 oil and gas pipelines affected by the

massive quake, the paper said.



Five  of  the  firm's  employees died in the quake, China's worst since

1976 with the death toll exceeding 34,000.



Sichuan,  a  largely  rural  province  that  accounts  for 4 percent of

China's  economy,  is  a major gas producer accounting for more than 20

percent of China's total output.



CNPC  also  said  on Tuesday that PetroChina had restored 99 percent of

its  natural  gas production in southwestern China by late Monday after

the  earthquake  temporarily  disrupted  operations in the region. (For

details  click  [ID:nPEK36412]) On Monday, China said it released 8,312

tonnes  of  strategic  reserves of refined fuel to help relief works in

quake-hit  Sichuan  and  Gansu  provinces, the National Development and

Reform Commission (NDRC) said on Monday.



CNPC  would also add 27,000 tonnes of diesel supplies to Gansu, another

report on NDRC's website said.