Index ends higher as coal firms rebound
By Lydia Chen |
May 18, 2011, Wednesday
|
Print Edition
Print Edition
THE Shanghai stock market rose yesterday, helped by energy-related shares where investors piled in to buy low following previous hefty losses over volatility in world commodity markets.
The Shanghai Composite Index edged up 0.1 percent to 2,852.77.
Coal producers were the strongest plays, rebounding over expectations that prices will continue to rally as China braces for a grim electricity supply shortage in summer.
China Shenhua Energy Co, the nation's largest coal producer, surged 2.3 percent to 28.27 yuan. Shanxi Guoyang New Energy Co jumped past the trading cap of 10 percent to close at 23.78 yuan.
China faces a summer shortage of 30 gigawatts of power as supply lags behind demand growth, the China Electricity Council said last month. This fear of shortfall pushed investors to sell most electricity producers. The sector was the worst performer, shedding 2.6 percent.
Shanghai Electric Power Co lost 2.9 percent to 5.66 yuan. Sichuan Minjiang Hydropower Co tumbled 5.6 percent to 10.53 yuan.
China Jianyin Investment Securities expects the market to remain weak around 2,700-2,800 points while Citic Securities reminded investors to be cautious in the second quarter as the economy is expected to slow while inflation may continue to stay high.
Haitong Securities said in a report yesterday that inflation will hit the highest level this year in May and June as food, especially vegetables, becomes more expensive.
The Consumer Price Index, a main gauge for inflation, may surge 5.5 percent in May and 5.9 percent in June, the brokerage warned.
The Shanghai Composite Index edged up 0.1 percent to 2,852.77.
Coal producers were the strongest plays, rebounding over expectations that prices will continue to rally as China braces for a grim electricity supply shortage in summer.
China Shenhua Energy Co, the nation's largest coal producer, surged 2.3 percent to 28.27 yuan. Shanxi Guoyang New Energy Co jumped past the trading cap of 10 percent to close at 23.78 yuan.
China faces a summer shortage of 30 gigawatts of power as supply lags behind demand growth, the China Electricity Council said last month. This fear of shortfall pushed investors to sell most electricity producers. The sector was the worst performer, shedding 2.6 percent.
Shanghai Electric Power Co lost 2.9 percent to 5.66 yuan. Sichuan Minjiang Hydropower Co tumbled 5.6 percent to 10.53 yuan.
China Jianyin Investment Securities expects the market to remain weak around 2,700-2,800 points while Citic Securities reminded investors to be cautious in the second quarter as the economy is expected to slow while inflation may continue to stay high.
Haitong Securities said in a report yesterday that inflation will hit the highest level this year in May and June as food, especially vegetables, becomes more expensive.
The Consumer Price Index, a main gauge for inflation, may surge 5.5 percent in May and 5.9 percent in June, the brokerage warned.
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