Japan's measure helps sentiment
By Feng Jianmin |
March 15, 2011, Tuesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index rose yesterday for the first time in three days as sentiment improved after the Japanese central bank poured 15 trillion yen (US$146 billion) into the market after the devastating earthquake and tsunami.
The Shanghai Composite Index inched up 0.1 percent to 2,937.63.
The Bank of Japan yesterday injected a record amount of cash into its financial system and doubled the size of its asset-purchase plan to shield the Japanese economy from the effects of the nation's strongest earthquake on record.
"The disaster in Japan has two sides," said Qin Xiaobin of Galaxy Securities. "The stimulus plan may add to global liquidity and fuel inflation, but the long-term reconstruction plan will boost demand for commodities."
There are opportunities for firms in the steel, telecommunications and pharmaceutical sectors, while exporters such as textile and agriculture companies will face a drop in demand, Qin said.
Steel makers and cement producers led gains. Inner Mongolia Baotou Steel Union Co jumped by the daily limit of 10 percent to 5.27 yuan after the company announced plans to raise as much as 6 billion yuan by issuing new shares to buy iron mines in southwest China. Anhui Conch Cement Co added 0.3 percent to 35.82 yuan.
Nuclear power equipment makers led the declines on concerns the development of nuclear power may slow after Japan's nuclear accident in the wake of Friday's quake. Shanghai Electric Group Co shed 3 percent to 8.58 yuan.
The Shanghai Composite Index inched up 0.1 percent to 2,937.63.
The Bank of Japan yesterday injected a record amount of cash into its financial system and doubled the size of its asset-purchase plan to shield the Japanese economy from the effects of the nation's strongest earthquake on record.
"The disaster in Japan has two sides," said Qin Xiaobin of Galaxy Securities. "The stimulus plan may add to global liquidity and fuel inflation, but the long-term reconstruction plan will boost demand for commodities."
There are opportunities for firms in the steel, telecommunications and pharmaceutical sectors, while exporters such as textile and agriculture companies will face a drop in demand, Qin said.
Steel makers and cement producers led gains. Inner Mongolia Baotou Steel Union Co jumped by the daily limit of 10 percent to 5.27 yuan after the company announced plans to raise as much as 6 billion yuan by issuing new shares to buy iron mines in southwest China. Anhui Conch Cement Co added 0.3 percent to 35.82 yuan.
Nuclear power equipment makers led the declines on concerns the development of nuclear power may slow after Japan's nuclear accident in the wake of Friday's quake. Shanghai Electric Group Co shed 3 percent to 8.58 yuan.
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