Bloomberg News

Sinopec Falls Most in 5 Months as Crude Rises: Hong Kong Mover

February 21, 2012

Feb. 20 (Bloomberg) -- China Petroleum & Chemical Corp., Asia’s largest refiner, fell the most in five months in Hong Kong trading after crude advanced to the highest since May in New York.

China Petroleum, known as Sinopec, dropped as much as 5.3 percent, the biggest decline since Sept. 22, to HK$8.86, and was at HK$8.87 as of 3:27 p.m. local time. PetroChina Co., the country’s No. 2 refiner, dropped 1.7 percent to HK$11.46. The benchmark Hang Seng Index declined 0.4 percent.

“Higher international crude prices certainly sparked some concern among investors that Sinopec may face big losses in refining,” said Shi Yan, an Shanghai-based analyst with UOB-Kay Hian Ltd. “It serves as a reminder on how vulnerable Sinopec is to fluctuations in crude prices.”

Crude for March delivery gained as much as $1.97 to $105.21 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since May 5. Prices rose after Iran said it halted some crude exports and investors bet that fuel demand will increase as Europe moves closer to bailing out Greece.

--Editors: Ryan Woo, Paul Gordon

To contact the reporter on this story: Guo Aibing in Hong Kong at aguo10@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.


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