Chinese share prices sharply higher in midday upon upbeat peripheral markets
5/11/2008 16:27
China's share prices soared this morning, echoing the largest overnight
Wall Street rally on a US presidential election day since 1984 and ensuing rises
on other Asian-Pacific markets.
The benchmark Shanghai Composite Index gained
71.95 points, or 4.22 percent, from the previous close to concluded the morning
session at 1,778.65 points. The Shenzhen index was up 4.18 percent, or 236.86
points, to 5,905.67 points.
The combined turnover was 32.31 billion yuan
(US$4.7 billion), even higher than the 32.11 billion yuan for the whole of
Monday and nearing the 34.8 billion yuan level for the whole of
yesterday.
Gains outnumbered losses by 874 to 4 in Shanghai and 740 to 2 in
Shenzhen, with nearly 20 stocks rising by the 10-percent daily limit. Financial,
coal, construction and non-ferrous metal sectors led the upward movement.
The
fact that large shareholders and senior executives of 136 listed companies
increased their holdings by nearly 730 million shares, together with a
five-trillion-yuan investment scheme by the communications industry, also
contributed to the upbeat performance, observers said.
The financial sector,
the Industrial and Commercial Bank of China, the country's largest lender,
gained 4.61 percent to 3.86 yuan, and China Merchants Bank soared by the
10-percent daily limit to 12.76 yuan.
China Ping An and China Life, two
leading insurers, went up nine percent and 5.55 percent, respectively, to 25.7
yuan and 19.6 yuan.
The non-ferrous metal sector gained substantially upon
price rises on international markets. Zhongjin Gold rose 6.56 percent to 25.49
yuan, Yunnan Copper Industry went up 7.98 percent to 7.44 yuan and Tin Industry
Holding up 6.87 percent to 8.4 yuan.
Building materials were stimulated by
release of the government reconstruction plan for the May 12
earthquake.
Taihang Cement gained 10.17 percent to 2.6 yuan, Hailuo Cement up
10 percent to 18.37 yuan and Jidong Cement up 9.93 percent to 5.98
yuan.
Cheng Dinghua, a senior analyst with Essence Securities, said though
corporate earnings declined to an unexpected rate of 12 percent on average, good
news would come from shifts in the monetary policy. He believed the Chinese
share prices would be ready to bottom out soon.
Xinhua
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