By Chua Kong Ho
Sept. 2 (Bloomberg) - Hong Kong stocks fell for a second day as commodity producers tracked declines in prices of metals and crude oil.
Cnooc Ltd., China's largest offshore oil producer, dropped 5.3 percent after oil prices retreated to a four-month low. Aluminum Corp. of China sank 4.4 percent after the price of the metal reached a six-month low. Zijin Mining Group Co., owner of China's largest gold mine, lost 6.2 percent as gold fell for a third day.
''It's been a painful last couple of months and the economic uncertainty means there'll be massive pressure on commodity stocks in the short term,'' said Ivan Leung, Hong Kong-based chief investment strategist at JPMorgan Private Bank, which oversees $400 billion in assets globally.
The Hang Seng Index lost 142.06, or 0.7 percent, to 20,764.25 at the 12:30 p.m. local-time break, erasing a gain of 0.8 percent. September futures fell 1 percent. Raw-material producers and energy-related companies were the two biggest decliners among the 11 industry groups on the broader Hang Seng Composite Index.
Cnooc Ltd. dropped 64 cents to HK$11.36, the most since Aug. 5. Hidili Industry International Development Ltd., a Chinese coal producer, declined 3.9 percent to HK$8.70, while rival Yanzhou Coal Mining Co. sank 3.4 percent to HK$12.56. Coal competes with natural gas, which tracks crude oil prices, in power generation.
Oil Declines
Oil futures plunged as much as 4.2 percent to $110.60 a barrel in New York, the lowest in more than four months, after the weakening of Hurricane Gustav eased concern rigs and refineries would incur major damage. Futures traded at $111.20 as of 10:49 a.m. in Singapore.
Aluminum Corp., or Chalco as the company is also known, declined 31 cents to HK$6.79. Aluminum for delivery in three months dropped $14 to $2,700 a metric ton on the London Metal Exchange yesterday.
Zijin Mining fell 6.2 percent to HK$4.85, after gold fell for a third day in Singapore. Bullion for immediate delivery dropped 0.4 percent to $814.54 an ounce.
The Hang Seng China Enterprises Index, which tracks so- called H shares of Chinese mainland companies, lost 1.2 percent to 11,304.37.
The following shares also rose or fell in Hong Kong. Stock symbols are in parentheses after company names:
China Resources Power Holdings Co. (836 HK), the third- biggest Hong Kong-listed Chinese electricity producer by market value, declined HK$0.58, or 3 percent, to HK$18.56. First-half profit fell 29 percent to HK$1.006 billion ($129 million) due to record coal costs, the company said.
Giordano International Ltd. (709 HK), a clothing retailer, gained 15 cents, or 5.3 percent, to HK$3, the most since June 6. First-half profit rose 45 percent to HK$208 million as it opened more stores in China, the company said.
Guangshen Railway Co. (525 HK), which operates trains in China's southern Guangdong province, climbed 8 cents, or 2.3 percent, to HK$3.55. UBS AG raised its stock rating to ''buy''' from ''neutral,'' citing a sharp drop in capital expenditure from 2009.
Shougang Concord International Enterprises Co. (697 HK), a Chinese steelmaker, slumped 23 cents, or 12 percent, to HK$1.69, after first-half profit fell to HK$1.09 billion from HK$555 million a year earlier. JPMorgan Chase & Co. cut its price estimate on the stock by 24 percent.
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