Shares close at 2-month high
By Ding Yining |
July 29, 2010, Thursday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday jumped to its highest close in two months, as airline and property shares rebounded after the central bank expressed optimism on the economy and reiterated it will continue with a relatively loose monetary policy.
The benchmark Shanghai Composite Index jumped 2.26 percent, or 58.3 points, to 2,633.66, breaking through psychologically 2,600 points for the first time since the end of May. Turnover was 122 billion yuan (US$17.9 billion).
The gauge has gained 11 percent since hitting a yearly low on July 5.
Airlines led the way among expectations that earnings will rise due to surging domestic tourism. China Southern Airlines gained 4.10 percent to 7.37 yuan. China Eastern Airlines advanced 5.58 percent to 8.14 yuan. The carrier will invest 2.38 billion yuan to set up an airline joint venture with the Yunnan provincial government. Air China rose 2.20 percent to 12.57 yuan.
The central bank said on Tuesday that China's economic fundamentals remain good and were not likely to face a double-dip recession. The country's decreasing dependence on exports also means the European debt crisis is unlikely to have a large impact, the central bank said in its second-quarter report.
Banks also gave the index a boost. The Bank of Communications jumped 2.83 percent to 6.53 yuan. Shanghai Pudong Development Bank rose 3.15 percent to 15.07 yuan. China Merchants Bank added 2.55 percent to close at 14.47 yuan.
"The rebound will continue because the market is now rather relaxed as there are no major shifts in macroeconomic policy and property rules," Zhongyuan Securities' Li Jun wrote in a research note.
Developers also gained. Shanghai Shimao Co rose 4.78 percent to 14.48 yuan. Gemdale Corp advanced 6.89 percent to 7.14 yuan.
Beijing Zhongke Sanhuan High-Tech Co said it may set up a joint venture with China Minmetals Nonferrous Metals Co to produce rare-earth materials. The stock rose 1.33 percent to 13.71 yuan.
Metal companies also rose. Yunnan Copper rose 2.79 percent to 20.29 yuan. Metallurgical Corp of China added 1.92 percent to 4.25 yuan.
The benchmark Shanghai Composite Index jumped 2.26 percent, or 58.3 points, to 2,633.66, breaking through psychologically 2,600 points for the first time since the end of May. Turnover was 122 billion yuan (US$17.9 billion).
The gauge has gained 11 percent since hitting a yearly low on July 5.
Airlines led the way among expectations that earnings will rise due to surging domestic tourism. China Southern Airlines gained 4.10 percent to 7.37 yuan. China Eastern Airlines advanced 5.58 percent to 8.14 yuan. The carrier will invest 2.38 billion yuan to set up an airline joint venture with the Yunnan provincial government. Air China rose 2.20 percent to 12.57 yuan.
The central bank said on Tuesday that China's economic fundamentals remain good and were not likely to face a double-dip recession. The country's decreasing dependence on exports also means the European debt crisis is unlikely to have a large impact, the central bank said in its second-quarter report.
Banks also gave the index a boost. The Bank of Communications jumped 2.83 percent to 6.53 yuan. Shanghai Pudong Development Bank rose 3.15 percent to 15.07 yuan. China Merchants Bank added 2.55 percent to close at 14.47 yuan.
"The rebound will continue because the market is now rather relaxed as there are no major shifts in macroeconomic policy and property rules," Zhongyuan Securities' Li Jun wrote in a research note.
Developers also gained. Shanghai Shimao Co rose 4.78 percent to 14.48 yuan. Gemdale Corp advanced 6.89 percent to 7.14 yuan.
Beijing Zhongke Sanhuan High-Tech Co said it may set up a joint venture with China Minmetals Nonferrous Metals Co to produce rare-earth materials. The stock rose 1.33 percent to 13.71 yuan.
Metal companies also rose. Yunnan Copper rose 2.79 percent to 20.29 yuan. Metallurgical Corp of China added 1.92 percent to 4.25 yuan.
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