Chinese oil giant CNOOC soars in Shanghai debut, defies weak market

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After opening 20% higher, CNOOC shares immediately shot up 44% on the Shanghai Stock Exchange, hitting a price ceiling for the day and triggering a 30-minute trading halt

CNOOC Ltd shares surged as much as 44 per cent in their Shanghai debut on Thursday, defying broad market weakness, as investors sought safety in the Chinese oil giant amid high energy prices and quickening inflation.

“CNOOC is being chased by investors who are seeking shelter in big caps with relatively low valuation and high dividends,” said Linus Yip, chief strategist at First Shanghai Group. “The stock also whets market appetite at a time when oil prices are climbing and inflation accelerating.” CNOOC will fully exploit financing channels both home and abroad, to promote quality growth, and create value for shareholders, he added.

CNOOC starts trading in Shanghai against a backdrop of a downbeat stock market that has witnessed an increasing number of stocks falling below their initial public offering prices. China’s stock markets are the second worst performers globally this year after sanctions-hit Russia, as the economy grapples with COVID-19 flare-ups, the Ukraine crisis, and U.S. monetary tightening.

 

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