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Wednesday, November 30, 2016, 16:29

Stocks rebound but gains capped ahead of OPEC meeting

By Reuters

Hong Kong stocks followed Wall Street higher on Wednesday but gains were limited as investors were reluctant to buy shares ahead of an OPEC meeting and Italy's referendum result.

The benchmark Hang Seng index added 0.2 percent, to 22,789.77 points, bringing its monthly loss to 0.6 percent. The Hong Kong China Enterprises Index lost 0.1 percent, to 9,838.06 points.

Risk appetite in the Hong Kong market was curbed ahead of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna to discuss a planned production cut in an effort to curb production.

Investors were also cautious as political risk resurfaced in Europe ahead of a referendum in Italy this weekend, while bullish U.S. GDP data strengthened expectations for a faster pace of interest rate hikes.

Sector performance was mixed. Energy and raw materials were among the biggest decliners, weighed down by a slump in commodity prices.

An index tracking thermal coal prices in mainland lost nearly 4 percent, while the mainland's metal futures also tumbled, amid signs of a spike in short-term borrowing costs.

Telecommunication shares were among the best performers. An index tracking the sector gained more than 1.4 percent on Wednesday, lifted by index heavyweight China Unicom Hong Kong Ltd , which jumped more than 7 percent.

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