Index soars to close at 5-month high
By Feng Jianmin and Ding Yining |
October 13, 2010, Wednesday
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Print Edition
Print Edition
SHANGHAI'S key stock index extended previous gains yesterday to a fresh five-month high, as oil and car producers soared while banks went flat on concerns over the central government's tightening measures.
The benchmark Shanghai Composite Index rose 1.23 percent, or 34.47 points, to 2,841.41 points, the highest close since May 5. Turnover fell to 211.8 billion yuan (US$31.8 billion) from Monday's 253 billion yuan.
Car producers led the gainers as the China Association of Automobile Manufacturers estimated that auto sales this year will hit 17 million, and after the Ministry of Industry and Information Technology raised entrance threshold for the tire industry on Monday to regulate production.
SAIC Motor Co, China's largest car maker, jumped by the daily limit of 10 percent to 18.95 yuan after reporting to have sold 324,800 cars in September, 23.3 percent higher from the same period last year.
Oil producers drove up the index on speculation that domestic oil prices may rise tracking gains of global oil rates. China Petroleum and Chemical Corp, Asia's largest refiner and also known as Sinopec, grew 3.92 percent to 9.02 yuan. PetroChina, the biggest index component, advanced 3.43 percent to 11.15 yuan.
Banks were flat after the central bank raised reserve requirements for six large commercial banks on a temporary basis, to drain cash from the economy but avoid over-tightening. Market estimates the move may freeze liquidity of between 280 billion yuan to 300 billion yuan.
"Banks still face regulatory risks for the rest of the year and property shares may become anti-inflation investment choices," Haitong Securities wrote in a research note. "The gauge may stay between 2,400 and 2,800 points in the fourth quarter," it wrote.
The Agricultural Bank of China fell 0.74 percent to 2.68 yuan. The Industrial and Commercial Bank of China lost 0.24 percent to 4.19 yuan. The Bank of China was unchanged at 3.42 yuan.
Gold miners and nonferrous metal producers extended previous gains despite lower commodity prices. Zijin Mining Group rose by the daily limit of 10 percent to 9.47 yuan.
Jiangxi Copper Co jumped 6.08 percent to 39.94 yuan.
The benchmark Shanghai Composite Index rose 1.23 percent, or 34.47 points, to 2,841.41 points, the highest close since May 5. Turnover fell to 211.8 billion yuan (US$31.8 billion) from Monday's 253 billion yuan.
Car producers led the gainers as the China Association of Automobile Manufacturers estimated that auto sales this year will hit 17 million, and after the Ministry of Industry and Information Technology raised entrance threshold for the tire industry on Monday to regulate production.
SAIC Motor Co, China's largest car maker, jumped by the daily limit of 10 percent to 18.95 yuan after reporting to have sold 324,800 cars in September, 23.3 percent higher from the same period last year.
Oil producers drove up the index on speculation that domestic oil prices may rise tracking gains of global oil rates. China Petroleum and Chemical Corp, Asia's largest refiner and also known as Sinopec, grew 3.92 percent to 9.02 yuan. PetroChina, the biggest index component, advanced 3.43 percent to 11.15 yuan.
Banks were flat after the central bank raised reserve requirements for six large commercial banks on a temporary basis, to drain cash from the economy but avoid over-tightening. Market estimates the move may freeze liquidity of between 280 billion yuan to 300 billion yuan.
"Banks still face regulatory risks for the rest of the year and property shares may become anti-inflation investment choices," Haitong Securities wrote in a research note. "The gauge may stay between 2,400 and 2,800 points in the fourth quarter," it wrote.
The Agricultural Bank of China fell 0.74 percent to 2.68 yuan. The Industrial and Commercial Bank of China lost 0.24 percent to 4.19 yuan. The Bank of China was unchanged at 3.42 yuan.
Gold miners and nonferrous metal producers extended previous gains despite lower commodity prices. Zijin Mining Group rose by the daily limit of 10 percent to 9.47 yuan.
Jiangxi Copper Co jumped 6.08 percent to 39.94 yuan.
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