Banks push Shanghai shares up
By Lydia Chen |
March 23, 2011, Wednesday
|
Print Edition
Print Edition
SHARES in Shanghai rose for a third straight day yesterday as lenders rose due to a promising profit outlook while commodity and energy shares gained after another wave of air attacks in Libya.
The Shanghai Composite Index added 0.3 percent to 2,919.14. Turnover dipped to 120 billion yuan (US$18 billion) from Monday's 122 billion yuan.
The rally among banks lifted the market. Banks attracted nearly 7 billion yuan of new funds yesterday.
Industrial and Commercial Bank of China, the country's biggest lender, rose 0.5 percent to 4.36 yuan. Hua Xia Bank Co jumped 3.7 percent to 12.14 yuan.
Average profit growth for listed banks could surpass 20 percent - both last year and this year - while their average price-to-earnings ratio is around 10 times, according to a report by Shenyin and Wanguo Securities Co.
The brokerage said lenders such as China Minsheng Banking Corp, China Construction Bank, the Industrial Bank and China Merchants Bank could be ideal investments now.
The brokerage said a good buying opportunity may arise as the latest bank reserve requirement hike takes effect on Friday. It is expected to freeze another 350 billion yuan in funds from commercial banks.
Gold, copper and oil producers all benefited from allied bombing raids in Libya as investors sought safe investments.
The Shanghai Composite Index added 0.3 percent to 2,919.14. Turnover dipped to 120 billion yuan (US$18 billion) from Monday's 122 billion yuan.
The rally among banks lifted the market. Banks attracted nearly 7 billion yuan of new funds yesterday.
Industrial and Commercial Bank of China, the country's biggest lender, rose 0.5 percent to 4.36 yuan. Hua Xia Bank Co jumped 3.7 percent to 12.14 yuan.
Average profit growth for listed banks could surpass 20 percent - both last year and this year - while their average price-to-earnings ratio is around 10 times, according to a report by Shenyin and Wanguo Securities Co.
The brokerage said lenders such as China Minsheng Banking Corp, China Construction Bank, the Industrial Bank and China Merchants Bank could be ideal investments now.
The brokerage said a good buying opportunity may arise as the latest bank reserve requirement hike takes effect on Friday. It is expected to freeze another 350 billion yuan in funds from commercial banks.
Gold, copper and oil producers all benefited from allied bombing raids in Libya as investors sought safe investments.
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