PetroChina Shares Rise on Higher Gas Tariffs: Hong Kong Mover
PetroChina Co. (857), the country’s biggest natural gas producer and supplier, rose the most in more than four years in Hong Kong trading after Beijing announced it will raise prices for non-residential users.
The stock rose as much as 6.8 percent to HK$8.81, the most since May 4, 2009. It was was at HK$8.70 as of 10:01 a.m., up 5.5 percent. The city’s benchmark Hang Seng Index fell 0.1 percent. The market was closed yesterday for a public holiday.
China will raise non-residential natural gas prices on July 10 to 1.95 yuan per cubic meter, from 1.69 yuan, the National Development and Reform Commission said in a statement on its website June 28. The move triggered BNP Paribas SA and Morgan Stanley (MS) to raise their ratings on the energy company due to higher profit expectations, in reports dated yesterday.
The price hike will help “reduce losses on imported natural gas,” and drive more upstream investment in the fuel, Simon Powell, an oil and gas analyst at CLSA Ltd. in Hong Kong said by phone today.
China Petroleum & Chemical Corp. (386), China’s second biggest natural gas supplier, gained 0.7 percent to HK$5.50.
PetroChina’s Shanghai-traded shares gained 1 percent to 7.69 yuan on Monday.
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