Gas sellers gain as price cuts seen to boost demand

China natural gas distributors including ENN Energy Holdings Ltd and Kunlun Energy Co gained on speculation demand for the fuel will increase after the government announced price cuts on Wednesday for business and industrial users.

ENN Energy Holdings added 0.9 percent to close at HK$43.50 ($5.6), the highest settlement in almost three weeks in Hong Kong trading. Kunlun Energy rose 2.2 percent to HK$6.40.

The reductions may cut profits for producers that benefited from the higher pricing.