A-shares in the oil and gas sector experienced a significant surge, while coal and energy equipment sectors led the gains. In contrast, communication equipment and precious metals sectors were among the biggest decliners.
On Monday, March 9, major A-share indices opened lower collectively: the Shanghai Composite Index fell by 0.62%, the Shenzhen Component Index dropped by 1.78%, the ChiNext Index declined by 2.37%, and the STAR Composite Index decreased by 2.59%. By the time of reporting, the losses in major A-share indices had widened.
In market performance, A-share oil and gas stocks opened sharply higher against the market trend. China National Offshore Oil Corporation (CNOOC), Zhongman Petroleum, and Guanghui Energy opened at the daily limit-up. Sectors including coal, natural gas, energy equipment, power, and agriculture were among the top gainers. Conversely, communication equipment, electronic components, semiconductors, and precious metals were among the leading decliners.
In the Hong Kong market, the Hang Seng Index opened down by 2.65%, and the Hang Seng Tech Index fell by 3.79%. For individual stocks, Hong Kong's "big three" oil companies opened higher: PetroChina Company Limited rose by 7.02%, CNOOC increased by 8.04%, and China Petroleum & Chemical Corporation (Sinopec) gained 1.34%.
Oil and gas stocks surged against the market downturn this morning. CNOOC, Zhongman Petroleum, and Guanghui Energy opened at the daily limit-up. Concept stocks related to oil and gas exploration also saw substantial gains: Potential Energy, Tongyuan Petroleum rose over 15%, while Intercontinental Oil & Gas hit the limit-up. Haimo Technology, Deshi Group, and Xinjin Power advanced more than 10%, with China Oil Engineering also following the upward trend.
Tensions in the Middle East led to a sharp spike in international oil prices. WTI crude futures breached $110 per barrel, recently trading at $111 per barrel, marking an intraday increase of 22.11%. Brent crude futures also surpassed $110 per barrel, recently quoted at $110.263 per barrel, up 18.96% for the day.
Shortly after oil prices exceeded $100 per barrel, former U.S. President Donald Trump stated on social media: "The short-term rise in oil prices is an insignificant cost for the security and peace of the United States and the world. Only a fool would disagree!"
During the early session, the domestic futures market for energy and chemical products showed strong bullish sentiment, with many contracts hitting limit-up. Main contracts for SC crude oil, fuel oil, low-sulphur fuel oil (LU), methanol, caustic soda, pure benzene, styrene, asphalt, BR rubber, liquefied gas, ethylene glycol, soda ash, bottle chips, short-staple fiber, para-xylene, PTA, urea, propylene, PVC, plastic, and polypropylene all reached their daily limit-up.
Coal chemical concept stocks strengthened early in the session. Lanhua Sci-Tech Venture recorded a 10% limit-up, Shanxi Coal International rose over 9%, while Yankuang Energy, Jinneng Holding Coal Group, and China Coal Energy advanced more than 8%. Shaanxi Coal Industry and Lu'an Environmental Energy also followed with gains.
The market believes that, driven by tight supply-demand dynamics in the international energy market and geopolitical factors, domestic coal demand is being supported against the backdrop of firm international coal prices.
Satellite Chemical, Hualu-Hengsheng, and Baofeng Energy saw their share prices hit new highs. Jinniu Chemical hit limit-up early in the session, while Kingmore Sci-Tech, Lucky Film, and COFCO Biotechnology also reached their daily limit-up.