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Banks and copper firms lift key index
By Lydia Chen |
December 31, 2010, Friday
|
Print Edition
Print Edition
SHANGHAI'S key stock index closed higher for a second day yesterday due to gains by market heavyweights such as banks and copper producers.
The Shanghai Composite Index added 0.29 percent, or 8.05 points, to 2,759.57. Turnover rose to 86.06 billion yuan (US$13 billion) from 76.20 billion yuan on Wednesday.
The Industrial and Commercial Bank of China and the Agricultural Bank of China helped the market recover from losses in the morning session after analysts said a recent hike in rates is, in fact, good news for the banking industry.
ICBC climbed 3.16 percent to 4.24 yuan while AgBank gained 0.78 percent to 2.60 yuan.
The People's Bank of China, the central bank, announced on Christmas Day the second rise in the lending and deposit rates since mid-October, which is likely to increase profits for the banks in 2011.
"As the new year draws near, banks will soon get their annual loan quota," said Yuan Jianxin, an analyst with Changjiang Securities. "Usually they will tend to front load the loans in the early months to enable them to make big profits faster than other industries."
"Bank prices are likely to correct in 2011," Yuan said.
Copper producers cheered on record metal prices in London and New York. Jiangxi Copper Co, the nation's biggest miner of the metal, gained 3.53 percent to a six-month high of 41.99 yuan.
But gloom continued to envelope developers as China reiterated it will maintain its tough stance against asset bubbles next year.
Poly Real Estate Group declined 2.8 percent to 12.51 yuan. Shanghai Shimao Co tumbled 4.65 percent to finish at 13.34 yuan.
The Shanghai Composite Index added 0.29 percent, or 8.05 points, to 2,759.57. Turnover rose to 86.06 billion yuan (US$13 billion) from 76.20 billion yuan on Wednesday.
The Industrial and Commercial Bank of China and the Agricultural Bank of China helped the market recover from losses in the morning session after analysts said a recent hike in rates is, in fact, good news for the banking industry.
ICBC climbed 3.16 percent to 4.24 yuan while AgBank gained 0.78 percent to 2.60 yuan.
The People's Bank of China, the central bank, announced on Christmas Day the second rise in the lending and deposit rates since mid-October, which is likely to increase profits for the banks in 2011.
"As the new year draws near, banks will soon get their annual loan quota," said Yuan Jianxin, an analyst with Changjiang Securities. "Usually they will tend to front load the loans in the early months to enable them to make big profits faster than other industries."
"Bank prices are likely to correct in 2011," Yuan said.
Copper producers cheered on record metal prices in London and New York. Jiangxi Copper Co, the nation's biggest miner of the metal, gained 3.53 percent to a six-month high of 41.99 yuan.
But gloom continued to envelope developers as China reiterated it will maintain its tough stance against asset bubbles next year.
Poly Real Estate Group declined 2.8 percent to 12.51 yuan. Shanghai Shimao Co tumbled 4.65 percent to finish at 13.34 yuan.
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