Oil rates, possible new funds lift shares
8/7/2005 10:04
Leo Zhang/Shanghai Daily news
Shanghai shares rose yesterday for the first day in eight led by oil-related
companies after crude prices jumped to a record high in New York. The rise
was also spurred by a news report the government may initially inject capital
into five domestic brokerages to bolster the country's capital markets. "The
price surge gave investors a reason to build up positions on oil stocks," said
Lu Chengde, a Guosen Securities Co trader. "Investors also expected financial
regulators to put in place more market-boosting measures." The Shanghai
Composite Index, which groups yuan-denominated A shares and foreign-currency B
shares, edged up 0.49 percent to 1,038.60. The A-share Index added 0.49 percent
to 1,090.67 and the B-share Index grew 0.35 percent to 62.71. Crude oil for
August delivery on Wednesday increased 2.8 percent to US$61.28 a barrel on the
New York Mercantile Exchange, the highest close since the futures started
trading in 1983. China Petroleum & Chemical Corp, Asia's biggest oil
refiner, rallied 2.90 percent to 3.55 yuan (43 US cents). The People's Bank
of China may help China Jianyin Investment Ltd, its investment unit, to infuse
funds into "key" brokers in the third quarter to boost their liquidity and
strengthen working capital, the Shanghai Securities News reported yesterday,
citing unnamed officials at the central bank.
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