Chinese shares jump 4.75 pct in morning session
20/6/2008 17:39
Chinese shares performed a U-turn to close 4.75 percent higher in the
morning session today after the country raised fuel prices. The benchmark
Shanghai Composite Index, which covers A and B shares, increased by 103.66
points to 2879.54 points, while the smaller Shenzhen Component Index rose 5.03
percent to 9622.25 points. China raised the prices of gasoline, diesel oil,
aviation kerosene and electricity, last night, revealing an unprecedented broad
plan to raise energy prices. The benchmark retail prices of gasoline and
diesel oil was lifted to 6,980 yuan and 6,520 yuan per ton, up more than 16
percent and 18 percent, respectively. PetroChina, the country's largest oil
producer, gained 5.14 percent to close at 15.95 yuan in the morning session,
while Asia's top oil refiner, Sinopect, rose 4.53 percent to 13.14 yuan. The
aviation industry was the most vulnerable to the gasoline price hike. Yet the
flag carrier Air China increased slightly by 0.37 percent to 8.06 yuan. China
Southern Airlines also rose 0.28 percent to 7.08 yuan, but China Eastern
Airlines dropped 0.61 percent to 6.5 yuan. The banking sector also saw big
gains. The Industrial and Commercial Bank of China, the country's largest
lender, rose 5.19 percent to 5.27 yuan. Bank of China also increased by 6.17
percent to 4.3 yuan.
Xinhua
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