China’s stock-index futures rose, signaling benchmark indexes may pare a weekly loss, as companies from Bank of China Ltd. to China Life Insurance Co. reported higher earnings.
Futures on the CSI 300 Index (SHSZ300) gained 0.2 percent to 2,474.2 as of 9:20 a.m. local time. Bank of China and Bank of Communications Co. may move after posting record quarterly profit. China Petroleum & Chemical Corp. (SNP:US), PetroChina Co., and BYD Co. may be active after reporting earnings.
The Shanghai Composite Index (SHCOMP) dropped 0.9 percent to 2,199.31 yesterday, taking its weekly loss to 2 percent. The gauge has retreated 1.6 percent in April, heading for a third straight monthly decline. China’s markets will be closed for the first three days of next week for public holidays.
The CSI 300 Index dropped 1.1 percent to 2,467.88 yesterday. The Hang Seng China Enterprises Index (HSCEI) gained 1.3 percent in Hong Kong. The Bloomberg China-US 55 Index (CH55BN) added 1.7 percent in New York.
The Shanghai Composite has slumped 9.7 percent from a Feb. 6 high on concern slowing growth will hurt earnings. The economy expanded 7.7 percent in the first quarter, missing estimates, as industrial production and fixed-asset investments in March fell short of forecasts.
The index trades at 12 times reported profit, within 2 percent of the lowest level since Dec. 21, according to data compiled by Bloomberg. Trading volumes in the measure were 4.7 percent higher than the 30-day average, while the gauge of 100- day volatility was at 20, the highest in a year.
The statistics bureau is due to release industrial companies’ profits for March tomorrow.
Net income at Bank of China climbed 8.2 percent to 39.8 billion yuan ($6.5 billion) in the first quarter, in line with the 39.2 billion-yuan median estimate of analysts surveyed by Bloomberg News, the lender said yesterday. Profit at BoCom grew by a faster-than-expected 12 percent to 17.7 billion yuan.
PetroChina posted net income (PTR:US) of 36 billion yuan in the three months ended March 31, beating the average of six analysts’ estimates for 34.3 billion yuan.
China Petroleum & Chemical Corp., Asia’s biggest refiner and also known as Sinopec, said net income rose 25 percent to 16.7 billion yuan in the first quarter, trailing the 18.9 billion-yuan average of analyst estimates.
China Life Insurance, the nation’s biggest insurer, posted a 79 percent jump in profit in the first quarter.
--Zhang Shidong. Editors: Richard Frost, Darren Boey
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