Developers, financial shares push index higher

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

SHANGHAI'S key stock index closed higher 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, climbed 1.54 percent, or 42.60 points, to 2,803.02 at 3pm.

Gainers in the Shanghai market outnumbered losers 730 to 72 while four 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 airlines all gained today 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 2.16 percent to 5.20 yuan (76 US cents). Huaxia Bank jumped 3.09 percent to 10 yuan.

Poly Real Estate Co, the second-biggest developer by market value, led developers higher. Poly surged 9.98 percent to 13.88 yuan. China Vanke, the biggest developer, rose 3.77 percent to 9.35 yuan.

Air China, the nation's largest carrier by market value, gained 4.22 percent to 8.15 yuan. China Southern Airlines Co, the biggest by fleet size, advanced 4.85 percent to 7.13 yuan and China Eastern Airlines increased 4.72 percent to 6.657 yuan.

But heavyweights such as Sinopec and PetroChina dropped.

Sinopec, the biggest oil refiner, slid 3.76 percent to 11.25 yuan while PetroChina, the biggest stock by market capitalization and the nation's largest oil producer, dipped 0.26 percent to 15.32 yuan.

Baoshan Iron & Steel Co, China's biggest steel maker, slumped 7.83 percent to 9.06 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.