Boost in output lifts key index
By Feng Jianmin and Pan Xiaoyi |
December 2, 2010, Thursday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday rose for the first time in four days, boosted by a strong expansion in manufacturing in November which overshadowed investor worries over China's economic growth.
The Shanghai Composite Index added 0.12 percent, or 3.27 points, to end at 2,823.45.
Turnover shrank to 104.2 billion yuan (US$15.6 billion) from 173.6 billion yuan on Tuesday. But Basing Investment forecast a possible rebound. It said in a note the sharp drop in transaction volume "reflected an easing off in pressure from a broad sell-off and may indicate a pick-up soon."
China's Purchasing Managers' Index, a comprehensive gauge of industrial activities nationwide, gained 0.5 percentage point from a month earlier to 55.2 percent in November, the China Federation of Logistics and Purchasing said. The index has risen for four consecutive months. A reading above 50 percent indicates expansion.
"The stronger PMI strengthens market confidence that China's manufacturing has bottomed out," said Deng Eryong, an analyst at Changjiang Securities Co. But "the most pressing problem (for manufacturers) remains surging prices."
Analysts also warned economic growth may be hurt by faster inflation as firms face rising raw material costs.
Power producers were charged up because China is expected to give priority to hydropower and invest heavily in nuclear power under a five-year plan for the industry.
Datang Huayin Electric Power and Dalian Thermal Power Co jumped by the 10 percent daily cap to 5.13 yuan and 13.05 yuan respectively.
Datang International Power Generation gained 3 percent to 6.80 yuan. The firm obtained approval to raise over 6.8 billion yuan through a private placement.
The Shanghai Composite Index added 0.12 percent, or 3.27 points, to end at 2,823.45.
Turnover shrank to 104.2 billion yuan (US$15.6 billion) from 173.6 billion yuan on Tuesday. But Basing Investment forecast a possible rebound. It said in a note the sharp drop in transaction volume "reflected an easing off in pressure from a broad sell-off and may indicate a pick-up soon."
China's Purchasing Managers' Index, a comprehensive gauge of industrial activities nationwide, gained 0.5 percentage point from a month earlier to 55.2 percent in November, the China Federation of Logistics and Purchasing said. The index has risen for four consecutive months. A reading above 50 percent indicates expansion.
"The stronger PMI strengthens market confidence that China's manufacturing has bottomed out," said Deng Eryong, an analyst at Changjiang Securities Co. But "the most pressing problem (for manufacturers) remains surging prices."
Analysts also warned economic growth may be hurt by faster inflation as firms face rising raw material costs.
Power producers were charged up because China is expected to give priority to hydropower and invest heavily in nuclear power under a five-year plan for the industry.
Datang Huayin Electric Power and Dalian Thermal Power Co jumped by the 10 percent daily cap to 5.13 yuan and 13.05 yuan respectively.
Datang International Power Generation gained 3 percent to 6.80 yuan. The firm obtained approval to raise over 6.8 billion yuan through a private placement.
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