Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200811/20081113/article_380499.htm
Market climbs higher at midday on strength of railway, steel shares
Created: 2008-11-13 12:16:42
Author:Lydia Chen
SHANGHAI’S key stock index closed higher in the morning session thanks to rises among railway companies and steel makers while airlines also jumped over possible lower fuel prices from the government.
The benchmark Shanghai Composite Index added 1.68 percent, or 31.31 points, to 1,890.42 points at 11:30am.
Gainers outnumbered losers 804 to 15 and three did not change.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 2.01 percent, or 13.07 points, to 514.83 points.
Railway companies and steel makers led the market gain this morning as China planned to embark on a 4 trillion yuan infrastructure spending program to bolster the country’s economy.
China Railway Group, Asia's biggest construction company, surged 9.87 percent to 5.79 yuan. China Railway Construction Co hiked 9.68 percent to 10.08 yuan while Chengdu-based China Railway Erju Co boosted by the daily cap of 10 percent to 8.25 yuan.
Baoshan Iron & Steel Co, China's biggest steel maker, added 3.07 percent to 5.38 yuan and Xinjiang Bayi Iron & Steel Co advanced 7.79 percent to 5.26 yuan.
The money will be used to finance programs in 10 major areas: low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several disasters, most notably the May 12 earthquake in Sichuan Province.
Airlines companies were also among the increased this morning after a government official revealed yesterday that the country’s top economic planning body is considering helping its unprofitable airlines by lowering domestic fuel prices before the end of the year after oil prices tumbled 60 percent.
Air China, the country’s largest carrier by market value, jumped 4.47 percent to 3.97 yuan. China Southern Airlines, the largest by fleet size, increased 2.67 percent to 3.08 yuan while China Eastern Airlines also buoyed 1.93 percent to 3.17 yuan.
The National Development and Reform Commission is reviewing a proposed cut, Liu Shaocheng, head of research for the Civil Aviation Administration of China, said in Beijing yesterday.
Elsewhere, Bank of China Ltd,China's fourth-largest lender by assets has abandoned a possible bid for HBOS Plc, Scotland's second-largest bank, the Scotsman reported. The stock edged up 0.31 percent to 3.26 yuan.
China Construction Bank Corp, the country's second-largest bank said it will increase its full-year lending target by as much as 50 billion yuan in response to the government's economic stimulus plan. The stock gained 0.68 percent to 4.42 yuan.
Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, inched up 0.25 percent to 3.95 yuan. Its Hong Kong-listed unit Industrial & Commercial Bank of China (Asia) Ltd said yesterday it will write down in full the HK$600 million (US$77.4 million) it has invested in bonds issued by three banks in Iceland.
The benchmark Shanghai Composite Index added 1.68 percent, or 31.31 points, to 1,890.42 points at 11:30am.
Gainers outnumbered losers 804 to 15 and three did not change.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 2.01 percent, or 13.07 points, to 514.83 points.
Railway companies and steel makers led the market gain this morning as China planned to embark on a 4 trillion yuan infrastructure spending program to bolster the country’s economy.
China Railway Group, Asia's biggest construction company, surged 9.87 percent to 5.79 yuan. China Railway Construction Co hiked 9.68 percent to 10.08 yuan while Chengdu-based China Railway Erju Co boosted by the daily cap of 10 percent to 8.25 yuan.
Baoshan Iron & Steel Co, China's biggest steel maker, added 3.07 percent to 5.38 yuan and Xinjiang Bayi Iron & Steel Co advanced 7.79 percent to 5.26 yuan.
The money will be used to finance programs in 10 major areas: low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several disasters, most notably the May 12 earthquake in Sichuan Province.
Airlines companies were also among the increased this morning after a government official revealed yesterday that the country’s top economic planning body is considering helping its unprofitable airlines by lowering domestic fuel prices before the end of the year after oil prices tumbled 60 percent.
Air China, the country’s largest carrier by market value, jumped 4.47 percent to 3.97 yuan. China Southern Airlines, the largest by fleet size, increased 2.67 percent to 3.08 yuan while China Eastern Airlines also buoyed 1.93 percent to 3.17 yuan.
The National Development and Reform Commission is reviewing a proposed cut, Liu Shaocheng, head of research for the Civil Aviation Administration of China, said in Beijing yesterday.
Elsewhere, Bank of China Ltd,China's fourth-largest lender by assets has abandoned a possible bid for HBOS Plc, Scotland's second-largest bank, the Scotsman reported. The stock edged up 0.31 percent to 3.26 yuan.
China Construction Bank Corp, the country's second-largest bank said it will increase its full-year lending target by as much as 50 billion yuan in response to the government's economic stimulus plan. The stock gained 0.68 percent to 4.42 yuan.
Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, inched up 0.25 percent to 3.95 yuan. Its Hong Kong-listed unit Industrial & Commercial Bank of China (Asia) Ltd said yesterday it will write down in full the HK$600 million (US$77.4 million) it has invested in bonds issued by three banks in Iceland.
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