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Stocks rally on steelmaker's buyback plan
By Ye Zhen |
August 28, 2012, Tuesday
|
Online Edition
Online Edition
SHANGHAI stocks gained the most in three weeks, boosted by steel and oil heavyweights after China's largest steelmaker announced a buyback plan to shore up investor confidence.
The key Shanghai Composite Index advanced 0.85 percent, or 17.45 points to settle at 2,073.15 points. Turnover was 42.1 billion yuan (US$6.7 billion) at the trading close.
Baoshan Iron and Steel Co, the nation's biggest steelmaker, today said it plans to buy back 5 billion yuan worth of shares at no more than 5 yuan per share to protect shareholders' interests and boost investor confidence.
The buyback is expected to stabilize the company's stock price as well as the equity market, said Li Daxiao, chief researcher at Shenzhen-based Yingda Securities. More companies should follow its suit, Li said.
Baoshan Iron and Steel Co jumped by the daily limit of 10 percent to close at 4.48 yuan. Jiangsu Yulong Steel Pipe Co rose 6.7 percent to 10.46 yuan. Inner Mongolia BaoTou Steel Union Co added 1.1 percent to 5.35 yuan.
Oil producers advanced on speculation that international oil prices will rise. China Petroleum and Chemical Co, the nation's largest oil refiner, increased 5.4 percent to end at 6.23 yuan. PetroChina Co, the second biggest player, climbed 2.1 percent to 8.95 yuan.
Brokerages gained after China Securities Finance Corp yesterday issued re-lending rules for margin trading and short selling business. CITIC Securities, the biggest listed brokerage, rose 0.5 percent to finish at 10.24 yuan. Founder Securities Co gained 2 percent to 4.09 yuan. Haitong Securities Co added 1.4 percent to 8.18 yuan.
The key Shanghai Composite Index advanced 0.85 percent, or 17.45 points to settle at 2,073.15 points. Turnover was 42.1 billion yuan (US$6.7 billion) at the trading close.
Baoshan Iron and Steel Co, the nation's biggest steelmaker, today said it plans to buy back 5 billion yuan worth of shares at no more than 5 yuan per share to protect shareholders' interests and boost investor confidence.
The buyback is expected to stabilize the company's stock price as well as the equity market, said Li Daxiao, chief researcher at Shenzhen-based Yingda Securities. More companies should follow its suit, Li said.
Baoshan Iron and Steel Co jumped by the daily limit of 10 percent to close at 4.48 yuan. Jiangsu Yulong Steel Pipe Co rose 6.7 percent to 10.46 yuan. Inner Mongolia BaoTou Steel Union Co added 1.1 percent to 5.35 yuan.
Oil producers advanced on speculation that international oil prices will rise. China Petroleum and Chemical Co, the nation's largest oil refiner, increased 5.4 percent to end at 6.23 yuan. PetroChina Co, the second biggest player, climbed 2.1 percent to 8.95 yuan.
Brokerages gained after China Securities Finance Corp yesterday issued re-lending rules for margin trading and short selling business. CITIC Securities, the biggest listed brokerage, rose 0.5 percent to finish at 10.24 yuan. Founder Securities Co gained 2 percent to 4.09 yuan. Haitong Securities Co added 1.4 percent to 8.18 yuan.
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