Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200812/20081217/article_384756.htm
Market up on speculation of another cut
Created: 2008-12-17
Author:Pan Xiaoyi
SHANGHAI'S key stock index ended higher yesterday on speculation of another interest rate cut.
The Shanghai Composite Index added 0.54 percent, or 10.63 points, to 1975.01, after reaching an intraday low of 1,907.83.
Gainers outnumbered losers 602 to 235 while 32 remained unchanged. Turnover in the local market shrank slightly to 52.8 billion yuan (US$7.76 billion), compared with 55.2 billion yuan on the previous trading day.
The People's Bank of China Governor Zhou Xiaochuan yesterday said he sees pressure to cut interest rates from now until the beginning of next year as growth slowed.
"The property sector was boosted by the anticipation of an interest-rate cut and led the index back to the upward track after shares plunged in the morning session," said Wan Bing, an analyst from GF Securities.
Shares opened lower on a gloomy economic outlook after investment spending slowed in the first 11 months.
The National Bureau of Statistics said yesterday that fixed-asset investment in urban areas rose 25.8 percent in the first 11 months year on year to 12.76 trillion yuan, slower than 27.2 percent between January and October and 27.6 percent in the first nine months.
According to the state-owned Assets Supervision and Administration Commission, combined profits of the country's 143 centrally owned enterprises dropped 26 percent in the first 11 months on rising inventories.
But a broad rebound pushed the index up just before the market closed with real estate developers leading the gains.
The Shanghai Composite Index added 0.54 percent, or 10.63 points, to 1975.01, after reaching an intraday low of 1,907.83.
Gainers outnumbered losers 602 to 235 while 32 remained unchanged. Turnover in the local market shrank slightly to 52.8 billion yuan (US$7.76 billion), compared with 55.2 billion yuan on the previous trading day.
The People's Bank of China Governor Zhou Xiaochuan yesterday said he sees pressure to cut interest rates from now until the beginning of next year as growth slowed.
"The property sector was boosted by the anticipation of an interest-rate cut and led the index back to the upward track after shares plunged in the morning session," said Wan Bing, an analyst from GF Securities.
Shares opened lower on a gloomy economic outlook after investment spending slowed in the first 11 months.
The National Bureau of Statistics said yesterday that fixed-asset investment in urban areas rose 25.8 percent in the first 11 months year on year to 12.76 trillion yuan, slower than 27.2 percent between January and October and 27.6 percent in the first nine months.
According to the state-owned Assets Supervision and Administration Commission, combined profits of the country's 143 centrally owned enterprises dropped 26 percent in the first 11 months on rising inventories.
But a broad rebound pushed the index up just before the market closed with real estate developers leading the gains.
Copyright © 2001-2009 Shanghai Daily Publishing House