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Thursday, September 29, 2016, 16:55

Energy shares lead HK market higher after oil price surge

By Reuters

Hong Kong stocks followed Asian markets higher on Thursday as major energy firms jumped after a surge in oil prices triggered by a surprise agreement among OPEC members to curb output.

The Hang Seng index rose 0.5 percent to 23,739.47 points, while the China Enterprises Index gained 0.8 percent to 9,794.33.

An index tracking Hong Kong's energy sector jumped 4.3 percent, as Chinese oil giants CNOOC, PetroChina and Sinopec Corp rose sharply.

Oil prices climbed nearly 6 percent on Wednesday after OPEC struck a deal to limit crude output, the organization's first agreement to cut production since 2008. But they dipped slightly in Asia on Thursday as the market grew more sceptical about how OPEC would implement the plan.

Sentiment was also aided by signs of progress toward the launch of the Shenzhen-Hong Kong Stock Connect, an eagerly-anticipated cross-border scheme that will link markets in the two cities and possibly see more mainland Chinese money flowing into Hong Kong equities.

The Stock Exchange of Hong Kong Ltd published on its website late Wednesday further information on the Shenzhen Connect to facilitate business and technical preparation.

All the main sectors in Hong Kong, except for property , ended the session in positive territory.

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