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Shanghai index jumps 1st in six days
By Lydia Chen |
December 29, 2010, Wednesday
|
Online Edition
Online Edition
SHANGHAI'S key stock index jumped for the first time in six days on strength of rising shares in retail and commodity sectors.
Retailers rallied on speculation recent declines have been excessive. A higher price of gold in the world markets drove up commodity shares while rare earth producers climbed up after China cut next year's export quota of the precious metal.
The Shanghai Composite Index leapt 0.68 percent, or 18.54 points, to 2,751.53. Despite the gains, turnover continued to shrink to 76.20 billion yuan (US$12.25 billion) from 96.99 billion yuan yesterday.
Analysts forecast mainland stocks may buck the downward trend in January.
"There's no need to stay gloomy for the market any more next month," said Chen Kaiwei, an analyst at Changjiang Securities. "Things will turn better in January and now it's time to buy on the dip."
For today's market, Shanghai Bailian climbed 3.44 percent to 15.05 yuan. Suning Appliance, China's biggest home appliance retailer by market value, gained 2.30 percent to 12.90 yuan.
Zhongjin Gold Co and Zijin Mining Group Co, the two biggest gold producer, both rose after spot gold hit two-week high and closed up 1.57 percent at US$1,406.75 an ounce Tuesday in the US.
For rare earth producers, China's decision to cut its first batch of rare earth export quotas by 11 percent in 2011 gave them a reason to celebrate.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co and Xiamen Tungston Co were both up although they have already enjoyed long-time rallies due to concerns supply may far lag demand to cause prices to soar.
China supplies more than 90 percent of the world's rare earths - a group of 17 chemically similar metallic elements that are vital in the manufacture of a wide range of products from cell phones, hybrid cars to wind turbines and missiles.
Retailers rallied on speculation recent declines have been excessive. A higher price of gold in the world markets drove up commodity shares while rare earth producers climbed up after China cut next year's export quota of the precious metal.
The Shanghai Composite Index leapt 0.68 percent, or 18.54 points, to 2,751.53. Despite the gains, turnover continued to shrink to 76.20 billion yuan (US$12.25 billion) from 96.99 billion yuan yesterday.
Analysts forecast mainland stocks may buck the downward trend in January.
"There's no need to stay gloomy for the market any more next month," said Chen Kaiwei, an analyst at Changjiang Securities. "Things will turn better in January and now it's time to buy on the dip."
For today's market, Shanghai Bailian climbed 3.44 percent to 15.05 yuan. Suning Appliance, China's biggest home appliance retailer by market value, gained 2.30 percent to 12.90 yuan.
Zhongjin Gold Co and Zijin Mining Group Co, the two biggest gold producer, both rose after spot gold hit two-week high and closed up 1.57 percent at US$1,406.75 an ounce Tuesday in the US.
For rare earth producers, China's decision to cut its first batch of rare earth export quotas by 11 percent in 2011 gave them a reason to celebrate.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co and Xiamen Tungston Co were both up although they have already enjoyed long-time rallies due to concerns supply may far lag demand to cause prices to soar.
China supplies more than 90 percent of the world's rare earths - a group of 17 chemically similar metallic elements that are vital in the manufacture of a wide range of products from cell phones, hybrid cars to wind turbines and missiles.
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