Hong Kong blue chips fell 0.3 percent on Friday after seesawing in a narrow range as investors were cautious before a US jobs report that should provide clues on whether the Federal Reserve will cut its benchmark rate this month. Hong Kong-listed China plays gained 0.5 percent as Bank of Communications advanced on its entry to the blue chip index and China Construction Bank hit a life high, its third this week.
Hong Kong Exchanges and Clearing Ltd (HKEx) shot up to a record high in heavy trade amid persistent hopes that China's direct offshore investment programme will fuel turnover on the exchange, the scheme's delays notwithstanding. "It's a story that never dies," said Francis Lun, general manager at Fulbright Securities.
"It's the train that never comes but people still have hope." Heavyweight China Mobile declined, due to a 15 percent cap that will apply to its index weighting as part of a quarterly revision to the benchmark index.
Oil producers outperformed on the back of high crude prices, with CNOOC Ltd setting a peak. CNOOC Sister Company China Oilfield Services Co also hit a life high on its plans to list domestically, a move that would strengthen the company's balance sheet.
The benchmark Hang Seng Index was unchanged on the week after closing down 67.79 points to end at 23,982.61. The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, posted a 1 percent weekly gain after rising 66.27 points to 14,489.40. Mainboard turnover was heavy at HK$109.1 billion (US $14 billion), up from Thursday's HK$79.4 billion.
The US non-farm payrolls report due later in the day follows data on Wednesday that showed US private employers were likely to have added 38,000 jobs in August, the slowest rate of growth in four years. Energy plays gained ground as crude prices neared a record high hit in August.
PetroChina Co Ltd climbed 1.1 percent to HK$11.28 and CNOOC settled up 2.7 percent at HK$9.78. Morgan Stanley a day earlier had upgraded the stock to overweight from equal weight on an upward revision of oil prices. Shares in China Oilfield Services jumped 6.7 percent to HK$15.2. HKEx ramped up 6.8 percent to HK$158.
Index compiler HSI Services said in August that following the day's close, all components would have a weighting of a maximum 15 percent, a rule that would affect current heavyweights China Mobile and HSBC Holdings. China Mobile fell 2.4 percent to HK$101. HSBC ended flat.
Bank of Communications jumped 1.7 percent to HK$9.14. China Construction Bank rose 1.5 percent to HK$6.94. China Communications Construction Co Ltd, the country's top port builder, slid nearly 2 percent to HK$17.66 ahead of its earnings report due later in the day.