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Property and cement firms help Shanghai index gain
By Feng Jianmin |
July 5, 2011, Tuesday
|
Online Edition
Online Edition
SHANGHAI'S key stock index closed slightly higher today as gains in the property and cement sectors offset losses made by banks and coal miners.
The benchmark Shanghai Composite Index edged up 0.13 percent to 2,816.36 points. Turnover fell to 129.6 billion yuan (US$20.1 billion) from yesterday's 145.5 billion yuan.
"There are needs of profit taking after a large rebound yesterday," said Wen Lijun, an analyst with Nanjing Securities. "But market sentiment is still high seeing strong growth in topical sectors."
China Vanke, China's largest listed property developers, rose 1.5 percent after the company said its sales in the first half of the year jumped 78.6 percent from last year to 65.65 billion yuan. Gemdale Corp added 0.9 percent to 6.77 yuan.
Cement producers rose on China's massive construction plan of affordable homes. A Shanxi Securities report recommended buying cement firms due to the sector's low valuation. It said that the average price earnings ratio of the sector is 14, a figure relatively low compared with the sector's historical records. Tangshan Jidong Cement Co advanced 3 percent to 25.65 yuan. Fujian Cement Inc added 0.3 percent to 12.55 yuan.
Banks fell after Moody's said in a report today the potential scale of problem loans at the lenders is probably larger than the official figure of 10.7 trillion yuan. The ratings agency said it views the credit outlook for the Chinese banking system as potentially turning to negative. Agricultural Bank of China was down 1.1 percent to 2.74 yuan.
Coal miners retreated from previous gains after data showed coal prices for power plants in eastern China fell first time in three months last week. Datong Coal Industry Co lost 0.6 percent to 17.69 yuan.
The benchmark Shanghai Composite Index edged up 0.13 percent to 2,816.36 points. Turnover fell to 129.6 billion yuan (US$20.1 billion) from yesterday's 145.5 billion yuan.
"There are needs of profit taking after a large rebound yesterday," said Wen Lijun, an analyst with Nanjing Securities. "But market sentiment is still high seeing strong growth in topical sectors."
China Vanke, China's largest listed property developers, rose 1.5 percent after the company said its sales in the first half of the year jumped 78.6 percent from last year to 65.65 billion yuan. Gemdale Corp added 0.9 percent to 6.77 yuan.
Cement producers rose on China's massive construction plan of affordable homes. A Shanxi Securities report recommended buying cement firms due to the sector's low valuation. It said that the average price earnings ratio of the sector is 14, a figure relatively low compared with the sector's historical records. Tangshan Jidong Cement Co advanced 3 percent to 25.65 yuan. Fujian Cement Inc added 0.3 percent to 12.55 yuan.
Banks fell after Moody's said in a report today the potential scale of problem loans at the lenders is probably larger than the official figure of 10.7 trillion yuan. The ratings agency said it views the credit outlook for the Chinese banking system as potentially turning to negative. Agricultural Bank of China was down 1.1 percent to 2.74 yuan.
Coal miners retreated from previous gains after data showed coal prices for power plants in eastern China fell first time in three months last week. Datong Coal Industry Co lost 0.6 percent to 17.69 yuan.
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