HK Stock Market Move | Oil service stocks rise against the market trend, market concerns about escalating Iranian situation, institutions say oil service prosperity transmission time is longer.

Oil service stocks surged against the market, as of the time of writing, PRODUCTIVE TECH (00650) rose by 10.91%, to 0.305 Hong Kong dollars; Shandong Molong Petroleum Machinery (00568) rose by 8.74%, to 4.48 Hong Kong dollars; SINOPEC SSC (01033) rose by 4.17%, to 1 Hong Kong dollar; China Oilfield Services (02883) rose by 1.78%, to 10.31 Hong Kong dollars. On the news front, it was reported that US President Trump has told his advisors that he is "inclined to initiate a preliminary strike (against Iran) in the coming days", followed by a larger military strike in the coming months to force Iran to "succumb" and reach an agreement with the US. The market is concerned that US military strikes against Iran could disrupt Iranian oil production and logistics in the Persian Gulf region. Orient released a research report stating that due to geopolitical tensions, concerns about a reduction in oil and gas supply have increased, leading to a rise in oil prices. As oil service projects have longer construction cycles, companies often need to observe the sustainability of oil prices. The current concerns over geopolitical conflicts have pushed up oil prices and market expectations, but the recovery of the oil service industry still requires events to unfold. We expect the transmission of oil price recovery to oil service industry prosperity to take at least half a year. Considering that downstream companies will pay more attention to long-term cooperation with suppliers, we believe that highly competitive enterprises are more likely to benefit from the recovery.