Energy stocks sink but oil bounces as year ends

Along with a sharp growth slowdown in China, the slump in commodities has been a key story through 2015, with the cost of oil down more than 60 per cent from recent peaks seen in summer 2014

AFP, HONG KONG: Energy shares fell again yesterday on the last trading day of the year, tracking losses in New York and Europe although oil prices bounced slightly following another hefty loss.
With business light, stock markets flitted in and out of positive territory and Shanghai ended a rollercoaster year on a low note, losing almost one per cent.
Crude prices edged up slightly but were unable to claw back the losses of more than three per cent suffered Wednesday after data showed a surprise jump in US commercial stockpiles.
Along with a sharp growth slowdown in China, the slump in commodities has been a key story through 2015, with the cost of oil down more than 60 per cent from recent peaks seen in summer 2014.
Crude has been hammered by anaemic demand, a slowdown in the global economy—particularly China—a worldwide supply glut and a strong dollar.
In Hong Kong petroleum-linked firms dipped, with CNOOC down 1.6 per cent, PetroChina off one per cent and Kunlun Energy 0.3 per cent lower.
And in Sydney mining giant BHP Billiton lost 1.3 per cent while Rio Tinto eased 0.2 per cent and Santos shed 2.7 per cent.
“This year has been a very volatile and difficult year as the markets were assaulted by volatility from different asset classes,” Kelvin Tay, regional chief investment officer at UBS’s wealth management business in Singapore, told Bloomberg News. “The sharp selloff in the commodities market badly affected the Asian currency markets, especially Southeast Asian currencies and equities.”     However, he added: “China’s economy will have a soft landing in 2016.”
The slowdown in China’s growth, and fears about Beijing’s ability to manage it, sent shudders through global markets in the summer, slicing trillions off valuations.
The Shanghai index, which had soared 150 per cent in 12 months crashed more than 40 per cent, with profit-taking and concerns about high valuations also stoking worries.
On Thursday markets limped towards the finish line, with Hong Kong ending up 0.2 per cent and Sydney easing 0.5 per cent by the close. Hong Kong lost more than seven per cent in 2015 while Sydney was two per cent lower, having succumbed to the summer sell-off after a bright start to the year.
Shanghai closed down 0.9 per cent, drawing to a close one of the most painful years in its 25-year history but still ending it 9.4 per cent to the good.

Energy stocks sink but oil bounces as year ends

Along with a sharp growth slowdown in China, the slump in commodities has been a key story through 2015, with the cost of oil down more than 60 per cent from recent peaks seen in summer 2014

AFP, HONG KONG: Energy shares fell again yesterday on the last trading day of the year, tracking losses in New York and Europe although oil prices bounced slightly following another hefty loss. With business light, stock markets flitted in and out of positive territory and Shanghai ended a rollercoaster year on a low note, losing almost one per cent. Crude prices edged up slightly but were unable to claw back the losses of more than three per cent suffered Wednesday after data showed a surprise jump in US commercial stockpiles. Along with a sharp growth slowdown in China, the slump in commodities has been a key story through 2015, with the cost of oil down more than 60 per cent from recent peaks seen in summer 2014. Crude has been hammered by anaemic demand, a slowdown in the global economyparticularly Chinaa worldwide supply glut and a strong dollar. In Hong Kong petroleum-linked firms dipped, with CNOOC down 1.6 per cent, PetroChina off one per cent and Kunlun Energy 0.3 per cent lower. And in Sydney mining giant BHP Billiton lost 1.3 per cent while Rio Tinto eased 0.2 per cent and Santos shed 2.7 per cent. This year has been a very volatile and difficult year as the markets were assaulted by volatility from different asset classes, Kelvin Tay, regional chief investment officer at UBSs wealth management business in Singapore, told Bloomberg News. The sharp selloff in the commodities market badly affected the Asian currency markets, especially Southeast Asian currencies and equities. However, he added: Chinas economy will have a soft landing in 2016. The slowdown in Chinas growth, and fears about Beijings ability to manage it, sent shudders through global markets in the summer, slicing trillions off valuations. The Shanghai index, which had soared 150 per cent in 12 months crashed more than 40 per cent, with profit-taking and concerns about high valuations also stoking worries. On Thursday markets limped towards the finish line, with Hong Kong ending up 0.2 per cent and Sydney easing 0.5 per cent by the close. Hong Kong lost more than seven per cent in 2015 while Sydney was two per cent lower, having succumbed to the summer sell-off after a bright start to the year. Shanghai closed down 0.9 per cent, drawing to a close one of the most painful years in its 25-year history but still ending it 9.4 per cent to the good.