Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200811/20081113/article_380511.htm
Shares gain as investors expect more government support
Created: 2008-11-13 16:32:03
Author:Ding Yining
SHANGHAI’S key stock index surged to more than 1,900 points amid speculation the government will enact more measures to assure economic growth continues.
The benchmark Shanghai Composite Index advanced 3.68 percent, or 68.50 points, to close at 1,927.61 points.
A total of 863 shares gained as only nine dropped and 36 remained unchanged. Turnover expanded to 78.1 billion yuan (US$11.4 million) from yesterday’s 40.9 billion yuan.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 4.15 percent, or 20.82 points, to 522.58 points.
The Shanghai index dipped at the beginning of trading but advanced and stayed above 1,900 points during the afternoon session. It has gained 10.29 percent since the beginning of this week.
“We project more policies including a further cut in interest rates and the increasing government expenditure will further stimulate the market, which will benefit property developers and infrastructure related enterprises,” according to a research report by China International Capital Co Ltd.
Airlines companies were among those to gain after a government official from the Civil Aviation Administration of China said 450 billion yuan will be invested to support the building of aviation infrastructure.
Air China, the biggest carrier by market value, rallied 5.53 percent to 4.01 yuan. China Eastern Airlines Corp surged 7.07 percent to 3.33 yuan.
The energy sector also gained. Pingdingshan Tianan Coal Mining Co Ltd surged 10 percent to close at 13.16 yuan. Henan Shen Huo Coal Industry and electricity Power Co Ltd jumped 9.69 percent to 14.15 yuan.
China Railway Group Ltd, Asia's biggest construction company, and China South Locomotive & Rolling Stock Co Ltd surged the daily limit of 10 percent.
“We suggest investors be cautious as shares have rallied in the past several days and price swings are likely,” said Wan Bing, an analyst with GF Securities.
The benchmark Shanghai Composite Index advanced 3.68 percent, or 68.50 points, to close at 1,927.61 points.
A total of 863 shares gained as only nine dropped and 36 remained unchanged. Turnover expanded to 78.1 billion yuan (US$11.4 million) from yesterday’s 40.9 billion yuan.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 4.15 percent, or 20.82 points, to 522.58 points.
The Shanghai index dipped at the beginning of trading but advanced and stayed above 1,900 points during the afternoon session. It has gained 10.29 percent since the beginning of this week.
“We project more policies including a further cut in interest rates and the increasing government expenditure will further stimulate the market, which will benefit property developers and infrastructure related enterprises,” according to a research report by China International Capital Co Ltd.
Airlines companies were among those to gain after a government official from the Civil Aviation Administration of China said 450 billion yuan will be invested to support the building of aviation infrastructure.
Air China, the biggest carrier by market value, rallied 5.53 percent to 4.01 yuan. China Eastern Airlines Corp surged 7.07 percent to 3.33 yuan.
The energy sector also gained. Pingdingshan Tianan Coal Mining Co Ltd surged 10 percent to close at 13.16 yuan. Henan Shen Huo Coal Industry and electricity Power Co Ltd jumped 9.69 percent to 14.15 yuan.
China Railway Group Ltd, Asia's biggest construction company, and China South Locomotive & Rolling Stock Co Ltd surged the daily limit of 10 percent.
“We suggest investors be cautious as shares have rallied in the past several days and price swings are likely,” said Wan Bing, an analyst with GF Securities.
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