Energy sector fuels jump in stock index
By Lydia Chen |
May 4, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday rose for a second consecutive trading day as utilities and energy sector shares gained as investors expect power shortages this summer.
The Shanghai Composite Index added 0.7 percent to close at 2,932.19 yesterday. Turnover remained thin at 103 billion yuan (US$15.85 billion), indicating investors remained cautious about the market's future direction.
Electricity producers were among the biggest gainers. Huaneng Power International Co jumped 4.1 percent to 6.34 yuan.
The China Electricity Council said last week the country faces a shortage of 30 million kilowatts this summer as supply lags demand.
The expected electricity shortage, however, boosted coal producers. China Shenhua Energy Co, the country's biggest coal producer, edged up 0.5 percent to 29.81 yuan while Yanzhou Coal Mining Co climbed 0.8 percent to 35.68 yuan.
Power station coal prices at the benchmark Qinhuangdao port rose to a two-and-a-half-year high of 805 yuan to 815 yuan a ton, according to Shanghai Securities News. Coal produced in China is nearly 100 yuan cheaper per ton than imported coal, the paper added.
Losses in the financial sector yesterday prevented the index from bigger gains as jittery investors remained concerned about high inflation.
China Construction Bank dipped 0.2 percent to 5.20 yuan.
Some investors had anticipated a rise in the reserve requirement for banks during the Labor Day holiday, but it did not materialize.
Still, Xia Lijun, an analyst with Hexun.com, a Chinese financial website, said the reserve requirement will likely be raised this month.
The Shanghai Composite Index added 0.7 percent to close at 2,932.19 yesterday. Turnover remained thin at 103 billion yuan (US$15.85 billion), indicating investors remained cautious about the market's future direction.
Electricity producers were among the biggest gainers. Huaneng Power International Co jumped 4.1 percent to 6.34 yuan.
The China Electricity Council said last week the country faces a shortage of 30 million kilowatts this summer as supply lags demand.
The expected electricity shortage, however, boosted coal producers. China Shenhua Energy Co, the country's biggest coal producer, edged up 0.5 percent to 29.81 yuan while Yanzhou Coal Mining Co climbed 0.8 percent to 35.68 yuan.
Power station coal prices at the benchmark Qinhuangdao port rose to a two-and-a-half-year high of 805 yuan to 815 yuan a ton, according to Shanghai Securities News. Coal produced in China is nearly 100 yuan cheaper per ton than imported coal, the paper added.
Losses in the financial sector yesterday prevented the index from bigger gains as jittery investors remained concerned about high inflation.
China Construction Bank dipped 0.2 percent to 5.20 yuan.
Some investors had anticipated a rise in the reserve requirement for banks during the Labor Day holiday, but it did not materialize.
Still, Xia Lijun, an analyst with Hexun.com, a Chinese financial website, said the reserve requirement will likely be raised this month.
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