HK Stock Market Move | Natural gas stocks strengthened during the day, Qatar Energy suspended liquefied natural gas production, and short-term changes in the Middle East may drive up prices of bulk chemicals.

Natural gas stocks rallied during the trading session, Shanghai Dazhong Public Utilities (01635) rose 27.51% to HK$3.93; ZHONGYU ENERGY (03633) rose 12.54% to HK$3.41; KUNLUN ENERGY (00135) rose 3.23% to HK$8.63; CHINA GAS HOLD (00384) rose 1.48% to HK$8.21; ENN ENERGY (02688) rose 1.76% to HK$69.55. In terms of news, European natural gas prices continued to rise. In the midst of escalating conflict in the Middle East, Qatar announced a suspension of liquefied natural gas production. After the announcement, benchmark futures prices surged by 50%. This move will exacerbate concerns in the market about serious disruptions in global energy supply, as tankers are currently essentially stopped from passing through the Strait of Hormuz. Dongxing pointed out that if geopolitical tensions persist and the closure of the Strait of Hormuz continues in the long term, it will strengthen expectations of global energy supply tightness. It is reported that due to the US attacks on Iran, risk aversion sentiments have significantly increased in the European financial markets. As one of the top three global exporters of liquefied natural gas, almost all of Qatar's LNG is shipped through the Strait of Hormuz, accounting for around 20% of the global supply. Dongxing believes that concerns about interruptions in the supply of oil and bulk chemicals due to the Iran conflict may lead to major price fluctuations in the short term.