Index rises but worries linger
By Feng Jianmin |
February 2, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday rose for the fifth day but investors were still concerned over data showing slower industrial activities and the inflation pressure to rise faster.
The Shanghai Composite Index added 0.3 percent to close at 2,798.96, the last trading day before the week-long Spring Festival holiday. The market will reopen on February 9. Turnover fell to 90 billion yuan (US$13.6 billion) from 107.7 billion yuan on Monday.
China's official Purchasing Managers' Index, a comprehensive gauge of the country's industrial activities, fell to 52.9 in January from 53.9 a month earlier, declining for a second consecutive month.
"The decline is insignificant and quite normal due to monetary tightening measures and seasonal reasons," said Liu Tiejun, an analyst of Haitong Securities. "Industrial activities may remain low in February and pick up after March."
Meanwhile, the HSBC China Manufacturing Purchasing Managers' Index held relatively steady as it edged up to 54.5 in January from 54.4 in December, which indicated better conditions in private companies.
But there is not enough reason to support a strong rebound in the market in February, Tebon Securities said in a note. "Inflation pressure is intense, and an interest rate hike may occur during the Spring Festival break."
Commodity producers gained after oil and copper prices rose in London. PetroChina Co, the index's largest heavyweight, rose 2.3 percent to 11.68 yuan. Jiangxi Copper Co, the nation's largest producer of the metal, added 1.5 percent to 39.77 yuan.
The Shanghai Composite Index added 0.3 percent to close at 2,798.96, the last trading day before the week-long Spring Festival holiday. The market will reopen on February 9. Turnover fell to 90 billion yuan (US$13.6 billion) from 107.7 billion yuan on Monday.
China's official Purchasing Managers' Index, a comprehensive gauge of the country's industrial activities, fell to 52.9 in January from 53.9 a month earlier, declining for a second consecutive month.
"The decline is insignificant and quite normal due to monetary tightening measures and seasonal reasons," said Liu Tiejun, an analyst of Haitong Securities. "Industrial activities may remain low in February and pick up after March."
Meanwhile, the HSBC China Manufacturing Purchasing Managers' Index held relatively steady as it edged up to 54.5 in January from 54.4 in December, which indicated better conditions in private companies.
But there is not enough reason to support a strong rebound in the market in February, Tebon Securities said in a note. "Inflation pressure is intense, and an interest rate hike may occur during the Spring Festival break."
Commodity producers gained after oil and copper prices rose in London. PetroChina Co, the index's largest heavyweight, rose 2.3 percent to 11.68 yuan. Jiangxi Copper Co, the nation's largest producer of the metal, added 1.5 percent to 39.77 yuan.
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