HK Hot Stocks - Power firms up, commodity-linked stocks drag
HONG KONG, Aug 11 (Reuters) - Resources and shipping stocks extended steep declines as international commodity prices buckled under a stronger U.S. dollar and the global freight index plunged to its lowest level in five and a half months.
At 0329 GMT, the Hang Seng Index .HSI was up 1.1 percent at 22,130.32, with lower oil prices encouraging many investors.
But the China Enterprises Index .HSCE of top locally listed Chinese firms fell 0.6 percent as commodity-related stocks dragged.
China's largest offshore oil producer CNOOC (0883.HK) slipped 2.1 percent weighed down by a 20 percent slide in crude prices in the past month from record highs.
The mainland's largest shipping firm China Cosco (1919.HK) plummeted 7.9 percent. The stock has fallen more than 25 percent slump since the begining of August, tracking a 23 percent decline in the Baltic Dry Index .BADI over a month.
Goldman Sachs said it expected the dry bulk freight market to continue declining through August. But it took China Cosco off its conviction sell list, with analysts expecting the Baltic Dry Index to rebound in September when the northern hemisphere grain season begins.
Coal stocks slipped after crude prices fell below $115 per barrel on Friday.
China Shenhua (1088.HK), the world's most valuable coal miner, fell 0.8 percent while Yanzhou Coal (1171.HK) dropped 2.9 percent.
Retreating energy prices helped boost power stocks, which had been falling after profit warnings from four major electricity producers.
Huaneng Power (0902.HK) rose 5 percent while Datang Power (0991.HK) rallied 3.9 percent on Monday.
Gold miner Zijin Mining (2899.HK) tumbled 3.8 percent as prices of the precious metal fell to a three-month low on Friday.
Gold prices rose on Monday thanks to some bargain hunting.
Angang Steel 0347 fell 1.8 percent ahead of its earnings announcement, due later in the day.
BNP Paribas has forecast an 11 percent increase in half-year profit at China's third largest steelmaker, but the brokerage is bearish on steel makers because of high iron ore costs.
Steel prices, which weakened seasonally in the third quarter, are expected to stay low in the last three months of the year, while coking coal and electricity costs could rise further.
Maanshan Iron & Steel 0323.K fell 3.1 percent.
(Reporting by Parvathy Ullatil; Editing by Dominic Whiting)
