Shanghai market little changed at midday

By Lydia Chen  |   2008-6-24  |     ONLINE EDITION

SHANGHAI'S key stock index closed slightly higher in the morning session today thanks to a rebound in the banking, real estate and airline sectors.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, edged up 0.26 percent, or 7.13 points, to 2,767.55 at 11:30am.

Gainers in the Shanghai market outnumbered losers 645 to 143 while 18 were unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 1.33 percent, or 10.40 points, to 790.34.

Banks, developers and airline carriers all gained this morning as investors judged previous slides, due to inflation concerns and rising crude oil prices, to be excessive.

Industrial and Commercial Bank of China, the country's biggest lender, gained 1.18 percent to 5.15 yuan (75 US cents). Huaxia Bank jumped 4.33 percent to 10.12 yuan.

China Vanke Co led developers higher. Vanke, the biggest developer, rose 2.77 percent to 9.26 yuan while Poly Real Estate Co hiked 5.78 percent to 13.45 yuan.

Air China, the nation's largest carrier by market value, gained 1.66 percent to 7.95 yuan. China Southern Airlines Co, the biggest by fleet size, advanced 1.62 percent to 6.91 yuan and China Eastern Airlines increased 1.89 percent to 6.47 yuan.

But the gains by the blue chips in those sectors were almost erased as heavyweights such as Sinopec and PetroChina dropped.

Sinopec, the biggest oil refiner, slid 5.90 percent to 11 yuan while PetroChina, the biggest stock by market capitalization and largest oil producer, lost 0.85 percent to 15.23 yuan.

Baoshan Iron & Steel Co, China's biggest steel maker, slumped 7.43 percent to 9.10 yuan.

Baosteel Group Co, which represents Chinese steel makers in annual iron ore price talks with global mining giants, yesterday agreed to pay 144.66 US cents a dry metric ton unit for so-called Pilbara blend fines in the year that began April 1, up 80 percent from a year ago.