Stock index climbs 2.5%
By Feng Jianmin |
November 2, 2010, Tuesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday rose for the first time in five trading days on stronger-than-expected industrial expansion in October.
The benchmark Shanghai Composite Index rose 2.5 percent, or 75.2 points, to close at 3,054, the highest since April 16. Turnover climbed to 254 billion yuan (US$38 billion) from last Friday's 194.6 billion yuan.
The country's official purchasing managers' index for manufacturing rose to a six-month high of 54.7 in October from 53.8 in September, the China Federation of Logistics and Purchasing said yesterday. A reading above 50 indicates industrial expansion.
Market watchers held a positive outlook for equities to rebound but warned of weakening global demand and growing inflationary pressure.
"The gain was stronger than expected," Haitong Securities said in a note.
"The economy's growth may depend more on domestic demand in future and company profits may fall as raw material prices keep rising."
Coal miners led the way on speculation that stronger production will boost demand. Datong Coal Industry Co jumped 6.8 percent to 27 yuan. China Shenhua Energy Co, China's largest coal producer, increased 3.4 percent to 29.57 yuan.
Metal producers gained after copper prices added 1.3 percent and aluminum prices climbed 1.8 percent in London. Jiangxi Copper Co, China's largest producer of the metal, rose 5.8 percent to 46.27 yuan. Aluminum Corp of China advanced 3.2 percent to 13.28 yuan.
The ChiNext Price Index, which tracks around 100 start-up companies, rose more than 4 percent to a four-month high after the locked shares of 28 companies became tradable yesterday. The shares of these 28 firms rose yesterday.
"Unlocking those shares will help squeeze out bubbles from excessively valued shares," Minmetals Securities said.
The benchmark Shanghai Composite Index rose 2.5 percent, or 75.2 points, to close at 3,054, the highest since April 16. Turnover climbed to 254 billion yuan (US$38 billion) from last Friday's 194.6 billion yuan.
The country's official purchasing managers' index for manufacturing rose to a six-month high of 54.7 in October from 53.8 in September, the China Federation of Logistics and Purchasing said yesterday. A reading above 50 indicates industrial expansion.
Market watchers held a positive outlook for equities to rebound but warned of weakening global demand and growing inflationary pressure.
"The gain was stronger than expected," Haitong Securities said in a note.
"The economy's growth may depend more on domestic demand in future and company profits may fall as raw material prices keep rising."
Coal miners led the way on speculation that stronger production will boost demand. Datong Coal Industry Co jumped 6.8 percent to 27 yuan. China Shenhua Energy Co, China's largest coal producer, increased 3.4 percent to 29.57 yuan.
Metal producers gained after copper prices added 1.3 percent and aluminum prices climbed 1.8 percent in London. Jiangxi Copper Co, China's largest producer of the metal, rose 5.8 percent to 46.27 yuan. Aluminum Corp of China advanced 3.2 percent to 13.28 yuan.
The ChiNext Price Index, which tracks around 100 start-up companies, rose more than 4 percent to a four-month high after the locked shares of 28 companies became tradable yesterday. The shares of these 28 firms rose yesterday.
"Unlocking those shares will help squeeze out bubbles from excessively valued shares," Minmetals Securities said.
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