Gas price hike hits stock markets
2 November 2007
The near 10% hike in gasoline and diesel prices was bad news for domestic stock prices as the Shanghai Composite Index closed down 0.7% on Thursday at 5,914.29 points, the Wall Street Journal reported. The Shenzhen Composite Index fell 2.4% to 1,427.89. The drop came amid concerns that the gas price increase, which itself was a response to rising international crude oil prices, will damage the earnings of mainland companies. Among the biggest losers were China Southern Airlines, down 5.6%, China Eastern Airlines, down 4.7%, and Air China, down 4.7%. However, the gas price news was good for China's petrochemical companies. Shares in China Petroleum & Chemical Corp and Sinopec rose 7.3% and 2.3%, respectively. In Hong Kong, Sinopec shares gained 10% and PetroChina 2.6%. The Hang Seng Index closed up 0.45% at 31,492.88.
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