Banks shares send index up
By Lydia Chen |
March 22, 2011, Tuesday
|
Print Edition
Print Edition
SHARES in Shanghai edged up yesterday on the back of rising banks while energy shares rallied over advancing oil prices amid intensifying allied air strikes in Libya.
The Shanghai Composite Index closed 0.1 percent higher. Turnover shrank to 122 billion yuan (US$18.6 billion) from Friday's 127 billion yuan.
Banks were the strongest market player, shaking off the influence of China's latest hike in reserve requirement ratio that is designed to squeeze excessive liquidity in the market.
The Industrial and Commercial Bank of China, the country's biggest lender, rose 1.88 percent to 4.34 yuan.
"The worst fears over more tightening have long gone, and the move was expected by investors," Huang Dongsheng, an analyst with GuoDu Securities Co. "That's why the reaction has not been strong."
The rally among financials came after China raised its bank reserve requirement ratio to a record 20 percent, which froze up an estimated 360 billion yuan on Friday. However, analysts said this would do little to affect the market now.
The indifferent reaction was also because of the fact that the market still has enough funds at its disposal. About 726 billion yuan worth of bills issued by the central bank and repurchase agreements are due in April, which is even larger than the 687 billion yuan worth of bills due to be redeemed this month.
Energy firms, such as oil producers, gained as crude oil price jumped after the United States, Britain and France began air strikes over Libya.
PetroChina Co, the country's largest oil producer, advanced 1.56 percent to 11.57 yuan.
The Shanghai Composite Index closed 0.1 percent higher. Turnover shrank to 122 billion yuan (US$18.6 billion) from Friday's 127 billion yuan.
Banks were the strongest market player, shaking off the influence of China's latest hike in reserve requirement ratio that is designed to squeeze excessive liquidity in the market.
The Industrial and Commercial Bank of China, the country's biggest lender, rose 1.88 percent to 4.34 yuan.
"The worst fears over more tightening have long gone, and the move was expected by investors," Huang Dongsheng, an analyst with GuoDu Securities Co. "That's why the reaction has not been strong."
The rally among financials came after China raised its bank reserve requirement ratio to a record 20 percent, which froze up an estimated 360 billion yuan on Friday. However, analysts said this would do little to affect the market now.
The indifferent reaction was also because of the fact that the market still has enough funds at its disposal. About 726 billion yuan worth of bills issued by the central bank and repurchase agreements are due in April, which is even larger than the 687 billion yuan worth of bills due to be redeemed this month.
Energy firms, such as oil producers, gained as crude oil price jumped after the United States, Britain and France began air strikes over Libya.
PetroChina Co, the country's largest oil producer, advanced 1.56 percent to 11.57 yuan.
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