Key index recovers from US debt panic
By Feng Jianmin |
April 21, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI'S key stock index closed slightly higher yesterday as gold miners and retailers gained but banks slid due to concerns over a possible decline in property prices.
The Shanghai Composite Index added 0.3 percent, or 8 points, to close at 3,007.04.
"Shanghai's stock market joined other global markets in recovering from the investor panic about a possible downgrade of the United States' sovereign debt," said Zhang Gang, an analyst at Central China Securities, adding that investors were still cautious.
He predicted that low valuation of shares will support the index to hover around 3,000 points in the near future and he does not see significant gains amid the Chinese government's tighter policies.
Retailers gained on speculation that spending will surge after personal income tax is reformed. The Standing Committee of the National People's Congress yesterday reviewed a proposal to raise the monthly personal income tax deduction to 3,000 yuan (US$459.40) and trim tax brackets to cut the burden on low- and middle-income groups.
Shanghai Bailian Group Co jumped 5.9 percent to 15.54 yuan.
Gold miners rallied after bullion prices hit a record high of US$1,499.20 per ounce in New York on Tuesday.
A report by Standard Chartered Bank said that gold and silver will enjoy continued support amid the weakening dollar.
Zhongjin Gold Mining Group Co jumped 4.9 percent to 39.57 yuan. Zijin Mining Co added 2.9 percent to finish at 8.17 yuan.
The Shanghai Composite Index added 0.3 percent, or 8 points, to close at 3,007.04.
"Shanghai's stock market joined other global markets in recovering from the investor panic about a possible downgrade of the United States' sovereign debt," said Zhang Gang, an analyst at Central China Securities, adding that investors were still cautious.
He predicted that low valuation of shares will support the index to hover around 3,000 points in the near future and he does not see significant gains amid the Chinese government's tighter policies.
Retailers gained on speculation that spending will surge after personal income tax is reformed. The Standing Committee of the National People's Congress yesterday reviewed a proposal to raise the monthly personal income tax deduction to 3,000 yuan (US$459.40) and trim tax brackets to cut the burden on low- and middle-income groups.
Shanghai Bailian Group Co jumped 5.9 percent to 15.54 yuan.
Gold miners rallied after bullion prices hit a record high of US$1,499.20 per ounce in New York on Tuesday.
A report by Standard Chartered Bank said that gold and silver will enjoy continued support amid the weakening dollar.
Zhongjin Gold Mining Group Co jumped 4.9 percent to 39.57 yuan. Zijin Mining Co added 2.9 percent to finish at 8.17 yuan.
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