Big caps fuel key index to end at highest in almost 4 months
By Lydia Chen |
March 8, 2011, Tuesday
|
Print Edition
Print Edition
SHARES in Shanghai yesterday rose to the highest in nearly four months, with the key index nearly touching the 3,000-point mark at the close as it was boosted by big caps, including coal producers and oil producers.
The Shanghai Composite Index gained 1.8 percent to 2,996.21, the highest close since November 15. Turnover surged to 208 billion yuan (US$32 billion) from Friday's 146 billion yuan.
The Shanghai market outperformed all its Asian counterparts this year as the benchmark index so far has surged 12 percent from the 2011 low set on January 25 at 2,677.43. The gauge has rebounded 6.7 percent this year, after plunging 14 percent last year.
Analyst predicted the rebound may continue given China's steady economic forecast this year while liquidity is expected to be ample, according to a note by China International Capital Co.
The leading Chinese investment firm overweighed cement makers, machinery producers and home appliance makers for short term investments. Airlines, irrigation and consumption shares are good for long-term investments, the note said.
Zhou Xuesong, an analyst of Sealand Securities, suggested investors should now shift their attention to consumption shares as the government has pledged to increase people's income over the next five years.
Coal and oil producers paced the increase on the back of surging oil prices amid worsening unrest in Libya.
A gauge of coal firms in the CSI 300 jumped 8 percent yesterday, the most among all sectors in Shanghai. Eight coal mining firms gained by the daily cap of 10 percent, with China Shenhua Energy Co, China Coal Energy Co and Yanzhou Coal Mining as the top three performers.
China Shenhua jumped by the 10 percent daily limit to 28.37 yuan after the company said it has obtained approval from the country's top economic planning body to start a new coal field project in the Inner Mongolia Autonomous Region where the company has found at least 13 billion tons of coal.
PetroChina, the country's biggest oil producer, rose 2.63 percent to 12.10 yuan as it benefitted from the surging oil price.
Oil surged to the highest in 29 months in New York as unrest in Libya renewed concerns supply disruptions may spread. Crude oil for April delivery gained as much as US$2.02, or 1.9 percent, to US$106.44 a barrel in after-hours trading in New York.
The Shanghai Composite Index gained 1.8 percent to 2,996.21, the highest close since November 15. Turnover surged to 208 billion yuan (US$32 billion) from Friday's 146 billion yuan.
The Shanghai market outperformed all its Asian counterparts this year as the benchmark index so far has surged 12 percent from the 2011 low set on January 25 at 2,677.43. The gauge has rebounded 6.7 percent this year, after plunging 14 percent last year.
Analyst predicted the rebound may continue given China's steady economic forecast this year while liquidity is expected to be ample, according to a note by China International Capital Co.
The leading Chinese investment firm overweighed cement makers, machinery producers and home appliance makers for short term investments. Airlines, irrigation and consumption shares are good for long-term investments, the note said.
Zhou Xuesong, an analyst of Sealand Securities, suggested investors should now shift their attention to consumption shares as the government has pledged to increase people's income over the next five years.
Coal and oil producers paced the increase on the back of surging oil prices amid worsening unrest in Libya.
A gauge of coal firms in the CSI 300 jumped 8 percent yesterday, the most among all sectors in Shanghai. Eight coal mining firms gained by the daily cap of 10 percent, with China Shenhua Energy Co, China Coal Energy Co and Yanzhou Coal Mining as the top three performers.
China Shenhua jumped by the 10 percent daily limit to 28.37 yuan after the company said it has obtained approval from the country's top economic planning body to start a new coal field project in the Inner Mongolia Autonomous Region where the company has found at least 13 billion tons of coal.
PetroChina, the country's biggest oil producer, rose 2.63 percent to 12.10 yuan as it benefitted from the surging oil price.
Oil surged to the highest in 29 months in New York as unrest in Libya renewed concerns supply disruptions may spread. Crude oil for April delivery gained as much as US$2.02, or 1.9 percent, to US$106.44 a barrel in after-hours trading in New York.
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