Related News
Stocks rise on cooling inflation, media rally
By Lydia Chen |
November 9, 2011, Wednesday
|
Online Edition
Online Edition
SHANGHAI'S stock market rose for the first time in three days thanks to gains among media plays while lenders rose after China said its inflation had cooled to the slowest pace in five months.
The Shanghai Composite Index managed to return to positive territory in the afternoon session and closed 0.84 percent up to 2,524.92. Turnover added slightly to 78.14 billion yuan (US$12.36 billion) from yesterday's 76.91 billion yuan.
Media industry plays were the biggest gainers today. The sector has been on a rising track after China designated it as a key area to develop in the next five years.
Chinese Universe Publishing and Media Co rocketed by the daily cap of 10 percent to 23.27 yuan. China South Publishing & Media Group Co hiked 6.04 percent to 11.59 yuan.
Banks secured the SCI rise after China's consumer price index, a main gauge of inflation, dropped to 5.5 percent year-on-year in October, the third consecutive monthly slide, the National Bureau of Statistics said today.
On a monthly basis, consumer prices edged up 0.1 percent in October, said the NBS in a statement on its website.
"The inflation fall will further heat up people's expectation that China may ease its tightening," Gui Haoming, chief strategist with Shenyin Wanguo Securities, said in a note today.
But turnover, which has failed to see any expansion in the past two days, may indicate investor caution as more adopt a wait-and-see approach to the actual measures that authorities would take in their inflation fight, given that the Shanghai benchmark index had already climbed nearly 10 percent in the past few weeks under easing tightening expectations, he added.
Fund managers at Morgan Stanley Huaxin Funds also cautioned today that volatility might dominate the market in a short term.
"It now may come to an observation period," the Shenzhen-based firm said in a note. "The government's focus may move to the growth side instead of concerns on inflation in the near future, which will cause waves in the stock markets," the note added.
The Shanghai Composite Index managed to return to positive territory in the afternoon session and closed 0.84 percent up to 2,524.92. Turnover added slightly to 78.14 billion yuan (US$12.36 billion) from yesterday's 76.91 billion yuan.
Media industry plays were the biggest gainers today. The sector has been on a rising track after China designated it as a key area to develop in the next five years.
Chinese Universe Publishing and Media Co rocketed by the daily cap of 10 percent to 23.27 yuan. China South Publishing & Media Group Co hiked 6.04 percent to 11.59 yuan.
Banks secured the SCI rise after China's consumer price index, a main gauge of inflation, dropped to 5.5 percent year-on-year in October, the third consecutive monthly slide, the National Bureau of Statistics said today.
On a monthly basis, consumer prices edged up 0.1 percent in October, said the NBS in a statement on its website.
"The inflation fall will further heat up people's expectation that China may ease its tightening," Gui Haoming, chief strategist with Shenyin Wanguo Securities, said in a note today.
But turnover, which has failed to see any expansion in the past two days, may indicate investor caution as more adopt a wait-and-see approach to the actual measures that authorities would take in their inflation fight, given that the Shanghai benchmark index had already climbed nearly 10 percent in the past few weeks under easing tightening expectations, he added.
Fund managers at Morgan Stanley Huaxin Funds also cautioned today that volatility might dominate the market in a short term.
"It now may come to an observation period," the Shenzhen-based firm said in a note. "The government's focus may move to the growth side instead of concerns on inflation in the near future, which will cause waves in the stock markets," the note added.
- 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.
