Shares of natural gas and liquefied petroleum gas distributor China Resources Gas Group Ltd (1193) rise by up to 20% to HK$33.85, the highest daily percentage gain since October 2008.
The stock has reached its highest level since March 3; it is the Hang Seng Composite Index’s sixth-largest percentage gainer (.HSCI)
Daiwa upgrades the stock to “outperform” from “hold” due to a slight EPS beat; however, it lowered the target price to HK$33 from HK$44 as the brokerage lowers its target price. EPS in 2022-23E based on a weaker dollar margin Foxconn (2317), a primary Apple Inc (AAPL) supplier, said on Monday that it has “basically” resumed normal operations at its most essential campuses in the Chinese city of Shenzhen following disruptions caused by COVID-19 outbreaks.
On Wednesday, the world’s largest contract electronics manufacturer said that it had resumed some production and operations at its Shenzhen campuses after arranging for some employees to live and work in a bubble, as requested by the local government in its fight against the spread of COVID-19.
According to a government notice, the company has “basically resumed normal work order and production operations” at its major campuses in the city’s Longhua and Guanlan districts, according to a statement.
European Shares Muted
European stocks and Wall Street equity futures drifted on Monday, as a rally fueled by signs of progress in peace talks between Russia and Ukraine faded.
The regional Stoxx 600 share index erased all losses since Russia invaded Ukraine in February; it fluctuated between small gains and losses last week. The Xetra Dax in Germany rose 0.1%, while the FTSE 100 in London rose 0.6%, as energy producers’ shares rose.
In early New York trading, futures implied that Wall Street’s S&P 500 share index would remain unchanged. At the same time, the technology-focused Nasdaq 100 would fall 0.1%. Yields on US Treasuries maturing from two to thirty years rose as debt prices fell. On Monday, the benchmark 10-year Treasury yield rose 0.05 percentage points to 2.2 percent. Traders backed away from medium-term inflationary risks and saw the US central bank raise interest rates more aggressively. Hence, the five-year profit increased in an unusual move, reaching 2.21 percent.
The US Federal Reserve raised its key interest rate last week for the first time since 2018. The president of the St. Louis Fed then argued that the central bank should raise the borrowing rate above 3% this year to combat rising consumer prices.
