Property companies, airlines fuel market
2/9/2005 10:10
Fu Chenghao/Shanghai Daily news
Advances by real
estate developers and airlines pushed shares in Shanghai to soar
yesterday. The Shanghai Composite Index, which tracks yuan-denominated A
shares and foreign-currency B shares, added 1.90 percent to 1,184.93. The
A-share Index climbed 1.89 percent to 1,245.21 while the B-share Index surged
3.54 percent to 67.35. Shanghai Lujiazui Finance & Trade Zone
Development, which operates many projects in the city's central business
district in Pudong New Area, jumped to its 10 percent daily limit to close at
6.09 yuan (75 US cents). Other real estate developers like Shanghai
Waigaoqiao Free Trade Zone Development Co and Shanghai Jinqiao Export Processing
Zone Development Co both also exceeded their daily trading cap to end at 6.59
yuan and 6.39 yuan respectively. Meanwhile, airlines also rebounded in
response to an easing in crude prices. China Eastern Airlines Corp surged
6.10 percent to close at 2.61 yuan while Hainan Airlines Co advanced 6.78
percent to 2.52 yuan. China Southern Airlines finished 3.83 percent higher at
2.71 yuan and Shanghai Airlines soared 3.65 percent. "But I think the market
still needs a long time to correct after companies reported a worse return on
equity for the first half," Lin Xuenong, an analyst at Huaxia Securities Co,
added. China United Telecommunications Corp added 1.11 percent to 2.74
yuan.
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