After pause for holiday, stocks hit 5-month high
By Feng Jianmin and Leo Zhang |
October 9, 2010, Saturday
|
Print Edition
Print Edition
Chinese key stock barometers jumped to the highest levels in more than five months yesterday, driven by a stronger economic outlook and rallies by global markets during the National Day holiday week.
The benchmark Shanghai Composite Index rose 3.1 percent to close at 2,738.74, the highest mark since May 6, when it hit 2,739.70. Turnover surged to 167.6 billion yuan (US$25.1 billion), up from 107.1 billion yuan on September 30.
The Shenzhen Component Index, which tracks the smaller mainland exchange, increased 3.9 percent to 11,911.37, the highest point since April 16, when the gauge finished at 12,416.86.
Both the Shanghai and Shenzhen markets had been closed from October 1 until yesterday for the National Day holiday break.
"The strong performance in Western and other Asian markets during the past week boosted local sentiment," said Liu Yu, an Orient Securities Co trader. "Confidence also came from positive purchasing indexes, which heralded a solid economic recovery."
China's official purchasing managers' indexes released during the holiday week showed faster-than-estimated expansion in both manufacturing and non-manufacturing industries.
Manufacturing PMI last month grew 2.1 points from August to 53.8, while non-manufacturing PMI rose to 61.7 from 60.1 in August. Index numbers above 50 points indicate an expansion.
Reflecting the upbeat numbers, Moody's Investors Service said yesterday that it will put China's debt rating on review for a possible upgrade in light of the country's response to the global financial crisis.
China's resilient economic performance, the prospect of continued strong growth and the likelihood that China can handle any losses from an unprecedented burst of bank lending in 2009 justified the move, Moody's said.
Coal and metal producers led the gainers yesterday, tracking growing commodity prices during the week.
Jiangxi Copper Co, the nation's biggest producer of the metal, jumped by the daily limit of 10 percent to 34.23 yuan. Yunnan Copper Co jumped 10 percent to 24.52 yuan. Aluminum Corp of China rose 2 percent to 11.32 yuan.
Datong Coal Industry Co advanced a daily limit of 10 percent to 18.45 yuan. China Shenhua Energy Co, the nation's largest producer, climbed 9 percent to 25.80 yuan. China Coal Energy Co added 9 percent to 10.77 yuan.
Property developers extended previous gains despite that several cities, including Shanghai, Shenzhen and Xiamen, announced plans during the past week to limit housing purchase.
The benchmark Shanghai Composite Index rose 3.1 percent to close at 2,738.74, the highest mark since May 6, when it hit 2,739.70. Turnover surged to 167.6 billion yuan (US$25.1 billion), up from 107.1 billion yuan on September 30.
The Shenzhen Component Index, which tracks the smaller mainland exchange, increased 3.9 percent to 11,911.37, the highest point since April 16, when the gauge finished at 12,416.86.
Both the Shanghai and Shenzhen markets had been closed from October 1 until yesterday for the National Day holiday break.
"The strong performance in Western and other Asian markets during the past week boosted local sentiment," said Liu Yu, an Orient Securities Co trader. "Confidence also came from positive purchasing indexes, which heralded a solid economic recovery."
China's official purchasing managers' indexes released during the holiday week showed faster-than-estimated expansion in both manufacturing and non-manufacturing industries.
Manufacturing PMI last month grew 2.1 points from August to 53.8, while non-manufacturing PMI rose to 61.7 from 60.1 in August. Index numbers above 50 points indicate an expansion.
Reflecting the upbeat numbers, Moody's Investors Service said yesterday that it will put China's debt rating on review for a possible upgrade in light of the country's response to the global financial crisis.
China's resilient economic performance, the prospect of continued strong growth and the likelihood that China can handle any losses from an unprecedented burst of bank lending in 2009 justified the move, Moody's said.
Coal and metal producers led the gainers yesterday, tracking growing commodity prices during the week.
Jiangxi Copper Co, the nation's biggest producer of the metal, jumped by the daily limit of 10 percent to 34.23 yuan. Yunnan Copper Co jumped 10 percent to 24.52 yuan. Aluminum Corp of China rose 2 percent to 11.32 yuan.
Datong Coal Industry Co advanced a daily limit of 10 percent to 18.45 yuan. China Shenhua Energy Co, the nation's largest producer, climbed 9 percent to 25.80 yuan. China Coal Energy Co added 9 percent to 10.77 yuan.
Property developers extended previous gains despite that several cities, including Shanghai, Shenzhen and Xiamen, announced plans during the past week to limit housing purchase.
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