Hong Kong Stock Market Midday Review

Oil stocks continued their upward trend as the impact of strategic petroleum reserve releases weakened, and the ongoing closure of the Strait of Hormuz is expected to further push up oil prices.

According to Zhitong Finance APP, the Hang Seng Index fell by 1.23%, or 319 points, to 25,579 points; the Hang Seng Tech Index dropped by 1.21%. The morning session turnover of Hong Kong stocks reached HKD 131 billion.

Oil stocks continued their upward trend as the impact of strategic petroleum reserve releases weakened. The ongoing closure of the Strait of Hormuz will continue to push oil prices higher. CNOOC (00883) rose by 3.4%; PetroChina (00857) increased by 2.38%; Shanghai Petrochemical Co., Ltd. (00338) gained 1.3%, and Shandong Molong (00568) surged over 13%.

Fertilizer stocks led gains. The Middle East is a key supplier of international urea, and rising gas prices are also expected to increase production costs for urea in the region. China BlueChemical Ltd. (03983) climbed by 8%; Sinofert Holdings Limited (00297) rose by 4.47%; China Xinlianxin Chemicals (01866) increased by 2%.

China Xuyang Group (01907) soared by 17% amid geopolitical tensions disrupting the chemical market. The company is a producer of methanol made from coke oven gas.

Fufeng Group (00546) surged over 7% before noon after the group recently announced a price increase for its monosodium glutamate products. Its high dividend yield remains attractive.

JD Industrial (07618) rose over 7% again after reaching a strategic partnership with Senior Material. Analysts are optimistic about the company’s expansion into key customer segments.

China Hongqiao (01378) gained 3.7%. J.P. Morgan believes the market underestimates the risk of aluminum supply disruptions, providing strong upward momentum for aluminum prices.

Gold stocks collectively declined as a strong US dollar and inflation concerns weighed on gold prices. The pace of Federal Reserve interest rate cuts may still be uncertain. Jihai Gold (02489) fell by 5%; Zijin Gold International (02259) dropped by 4.95%.

Copper stocks extended their recent declines. Inventories at the three major exchanges remain at high levels, while rising oil prices have fueled recession expectations, pressuring copper prices. Luoyang Molybdenum (03993) fell over 5%; Minmetals Resources (01208) dropped by 3%.



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