Hong Kong stocks soared on government's road projects

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Source: Dukascopy Bank SA

Hong Kong stocks soared on Friday after the government unveiled its plan to build more roads. The announcement raised speculation that the government will embark on stimulus measures. The results of the ECB press conference also spurred rally in Chinese equities. The Hang Seng Index skyrocketed 3.09% to end the week at 19,802.16. All economic sectors included in the index soared. Basic materials sectors led the gains. Aluminum Corp of China added 4.17% on potential demand increase as the state plans to fund more infrastructural projects. Oil and gas firms also joined the rally on rising crude oil prices. CNOOC and PetroChina rose 2.74% and 1.55%. Coal producers extended previous gains despite bleak demand prospects. China Coal and China Shenhua advanced 8.21% and 6.10%. Consumer services sector also jumped, with Sands China climbing 5.91%. Nomura raised Sands China's target price and maintained ‘buy' rating.

 

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