Banks lead way as stocks rise
By Pan Xiaoyi |
May 19, 2010, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks rebounded from a one-year low yesterday to close above 1 percent, helped by banks and property developers, on speculation the central government may not unwind its stimulus packages too quickly amid uncertainties over the global economic outlook.
The Shanghai Composite Index gained 1.36 percent, or 34.85 points, to end at 2,594.78. Turnover shrank to 84.7 billion yuan (US$12.5 billion) from 88.2 billion yuan on Monday.
"The debt crisis in Europe may hobble the global economic recovery and exert a negative impact on China's exports," said Yuan Yi, an analyst at Shenyin & Wanguo Research. "China may suspend some restrictive measures."
Property stocks rebounded, with Gemdale Corp and Beijing Capital Development each surging by the 10 percent daily cap to 6.16 yuan and 13.81 yuan respectively. Poly Real Estate Group, the biggest listed state-owned developer, climbed 7.9 percent to 10.90 yuan.
Banks were among the advancers. Shanghai Pudong Development Bank Co jumped 3.7 percent to 19.35 yuan and Fujian-based Industrial Bank Co soared 5.1 percent to 28.03 yuan.
"The bad loan problems are not seen to deteriorate in the following two years," Morgan Stanley wrote in a research note. "Banks now seem to have investment value" among investors, the United States investment bank added.
China Railway Group also rose after saying it won 69.2 billion yuan worth of new contracts, equivalent to 20 percent of its 2009 revenue, including railroad projects in China and a US$95.8 million order for a bridge in Morocco. Its shares climbed 2 percent to 4.60 yuan
Gold miners fell after bullion prices dipped. Zijin Mining Group Co dived 4.8 percent to 7.58 yuan and Shandong Gold Mining Co lost 5.8 percent 39.46 yuan.
The Shanghai Composite Index gained 1.36 percent, or 34.85 points, to end at 2,594.78. Turnover shrank to 84.7 billion yuan (US$12.5 billion) from 88.2 billion yuan on Monday.
"The debt crisis in Europe may hobble the global economic recovery and exert a negative impact on China's exports," said Yuan Yi, an analyst at Shenyin & Wanguo Research. "China may suspend some restrictive measures."
Property stocks rebounded, with Gemdale Corp and Beijing Capital Development each surging by the 10 percent daily cap to 6.16 yuan and 13.81 yuan respectively. Poly Real Estate Group, the biggest listed state-owned developer, climbed 7.9 percent to 10.90 yuan.
Banks were among the advancers. Shanghai Pudong Development Bank Co jumped 3.7 percent to 19.35 yuan and Fujian-based Industrial Bank Co soared 5.1 percent to 28.03 yuan.
"The bad loan problems are not seen to deteriorate in the following two years," Morgan Stanley wrote in a research note. "Banks now seem to have investment value" among investors, the United States investment bank added.
China Railway Group also rose after saying it won 69.2 billion yuan worth of new contracts, equivalent to 20 percent of its 2009 revenue, including railroad projects in China and a US$95.8 million order for a bridge in Morocco. Its shares climbed 2 percent to 4.60 yuan
Gold miners fell after bullion prices dipped. Zijin Mining Group Co dived 4.8 percent to 7.58 yuan and Shandong Gold Mining Co lost 5.8 percent 39.46 yuan.
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