Stocks hit 4-month pinnacle
By Feng Jianmin and Ding Yining |
October 12, 2010, Tuesday
|
Print Edition
Print Edition
WITH investors positive about the outlook for economic recovery, Shanghai's key stock index yesterday extended the largest daily gain in four months to close at the highest since May 5 as turnover hit a record high for the year.
The benchmark Shanghai Composite Index rose 2.49 percent, or 68.2 points, to close at 2,806.94. Turnover surged to 253 billion yuan (US$37.9 billion) from last Friday's 167 billion yuan.
The Shenzhen Composite Index, which tracks the smaller Chinese mainland exchange, edged up 0.86 percent to 1,212.14.
"Market confidence has been boosted as the index grew above 2,800 points," a research note by GF Securities said. "The recent gain in commodity prices was mainly due to high inflation catalyzed by low interest rates of Japan and the stimulus plan of the United States."
Currency risk
The note cautioned against short-term risks, such as a possible currency war that could add to the uncertainty and difficulty of global economic recovery.
"The Consumer Price Index is likely to fall from the peak in August, which suggests overall loose monetary policy will continue and raw material producers and consumer shares are likely to outperform the index in the short term," Sinolink Securities wrote in its fourth-quarter strategic investment report.
Metal producers extended previous gains. Jiangxi Copper Co, the nation's biggest producer of the metal, jumped 9.6 percent to 37.53 yuan. Yunnan Copper Co climbed 4.7 percent to 25.68 yuan. China Aluminum Corp grew 1.8 percent to 11.52 yuan.
With third-quarter macroeconomic statistics set to be released this week, "the index may climb further," said Xiao Bo, Huarong Securities' analyst.
The benchmark gauge is still down 14 percent from the beginning of this year, since the government introduced tight financial and tax measures to curb bubbling property prices. Investors worried that the moves could hurt sales of raw materials and financial institutions' earnings.
Energy firms led the gainers on news that graduated tariffs for residential-use power may be introduced as soon as next month, improving the profit outlook.
Shanxi Guoyang New Energy Co surged by the daily limit of 10 percent to 19.09 yuan. China Shenhua Energy Co, the nation's largest coal producer, rose 6.32 percent to 27.43 yuan. China Coal Energy Co added 6.59 percent to 11.48 yuan.
Brokers rebounded as transactions rose on positive market performance. GF Securities Co jumped by 10 percent to 37.33 yuan. CITIC Securities also rose 10 percent to 12.42 yuan. Haitong Securities grew 9 percent to 10.37 yuan.
Airlines were also strong among expectations that a stronger yuan will reduce fuel costs. Air China surged 4.5 percent to 12.99 yuan. China Eastern Airlines advanced 2.9 percent to 8.25 yuan.
The benchmark Shanghai Composite Index rose 2.49 percent, or 68.2 points, to close at 2,806.94. Turnover surged to 253 billion yuan (US$37.9 billion) from last Friday's 167 billion yuan.
The Shenzhen Composite Index, which tracks the smaller Chinese mainland exchange, edged up 0.86 percent to 1,212.14.
"Market confidence has been boosted as the index grew above 2,800 points," a research note by GF Securities said. "The recent gain in commodity prices was mainly due to high inflation catalyzed by low interest rates of Japan and the stimulus plan of the United States."
Currency risk
The note cautioned against short-term risks, such as a possible currency war that could add to the uncertainty and difficulty of global economic recovery.
"The Consumer Price Index is likely to fall from the peak in August, which suggests overall loose monetary policy will continue and raw material producers and consumer shares are likely to outperform the index in the short term," Sinolink Securities wrote in its fourth-quarter strategic investment report.
Metal producers extended previous gains. Jiangxi Copper Co, the nation's biggest producer of the metal, jumped 9.6 percent to 37.53 yuan. Yunnan Copper Co climbed 4.7 percent to 25.68 yuan. China Aluminum Corp grew 1.8 percent to 11.52 yuan.
With third-quarter macroeconomic statistics set to be released this week, "the index may climb further," said Xiao Bo, Huarong Securities' analyst.
The benchmark gauge is still down 14 percent from the beginning of this year, since the government introduced tight financial and tax measures to curb bubbling property prices. Investors worried that the moves could hurt sales of raw materials and financial institutions' earnings.
Energy firms led the gainers on news that graduated tariffs for residential-use power may be introduced as soon as next month, improving the profit outlook.
Shanxi Guoyang New Energy Co surged by the daily limit of 10 percent to 19.09 yuan. China Shenhua Energy Co, the nation's largest coal producer, rose 6.32 percent to 27.43 yuan. China Coal Energy Co added 6.59 percent to 11.48 yuan.
Brokers rebounded as transactions rose on positive market performance. GF Securities Co jumped by 10 percent to 37.33 yuan. CITIC Securities also rose 10 percent to 12.42 yuan. Haitong Securities grew 9 percent to 10.37 yuan.
Airlines were also strong among expectations that a stronger yuan will reduce fuel costs. Air China surged 4.5 percent to 12.99 yuan. China Eastern Airlines advanced 2.9 percent to 8.25 yuan.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
