Heavyweights boost market at midday

By Lydia Chen  |   2008-6-18  |     ONLINE EDITION

SHANGHAI'S key stock index increased strongly in the morning session today thanks to a rally among market heavyweights such as Sinopec and PetroChina.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 2.70 percent, or 75.54 points, to 2,870.29 at 11:30am.

Gainers in the Shanghai market outnumbered losers 722 to 69 while seven were unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 2.95 percent, or 23.66 points, to 825.63.

Sinopec, the nation's biggest oil refiner, jumped 4.40 percent to 12.35 yuan (US$1.79) while PetroChina, the largest oil producer and the biggest market heavyweight, climbed 2.36 percent to 15.60 yuan.

PetroChina Co will increase the supply of oil products by 12 percent in each of the next three months to Guangdong as the southern Chinese province battles rainstorms, Xinhua news agency reported, citing local government.

Aluminum Corp of China Ltd, the nation's biggest maker of the lightweight metal and known as Chalco, partially rebounded from yesterday's 7.99 percent decline and surged 6.68 percent to 13.89 yuan this morning.

Its parent Aluminum China may increase its stake in Rio Tinto Group should favorable market conditions exist, President Xiao Yaqing has said.

Baoshan Iron & Steel Co, China's biggest steel maker, rose 2.85 percent to 10.83 yuan. The company said it will sell up to 10 billion yuan in six-year bonds on June 20 to help pay for the acquisition of a plant from its parent.

China Life Insurance Co, the nation's biggest insurer, added 1.32 percent to 25.29 yuan. The insurer posted 151.5 billion yuan of premiums in the first five months of this year. The company didn't provide year-earlier figures in its statement to the Hong Kong Stock Exchange yesterday.