Blue chips send index higher at midday

By Lydia Chen  |   2008-7-3  |     ONLINE EDITION

SHANGHAI'S key stock index rose in the morning session today thanks to a broad recovery among blue chips.

The Shanghai Composite Index gained 1.29 percent, or 34.25 points, to 2,685.98 at 11:30am.

Gainers in the Shanghai market outnumbered losers 787 to 31 while two were unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 2.85 percent, or 22.39 points, to 807.27.

The Shanghai market ended a four-day losing streak yesterday after the state news agency said the country's stock markets will be "stable and healthy."

The Shanghai index has lost nearly 50 percent of its value so far this year, making it the worst-performing market in the world.

Blue chips in real estate, banking and metal sectors all enjoyed a good morning.

Shanghai-based Shimao Property Co surged the daily cap of 10 percent to 10.34 yuan (US$1.51) while China Vanke Co, the country's largest developer, added 1.65 percent to 8.60 yuan.

Minsheng Bank, the only listed privately-owned Chinese bank, gained 1.83 percent to 5.56 yuan. Industrial & Commercial Bank of China, the nation's biggest lender, increased 0.21 percent to 4.74 yuan.

Xinjiang Ba Yi Iron & Steel Co, the steel maker controlled by Baosteel Group Corp, hiked 7.13 percent to 8.87 yuan. Bayi said its first-half profit may have jumped more than threefold due to higher metal prices.

Electricity producers were among the gainers this morning after China increased the price of electricity paid to coal-fired producers.

Huaneng Power International Inc, a unit of China's largest power producer by capacity, jumped 3 percent to 6.86 yuan. GD Power Development Co increased 3.55 percent to 6.42 yuan.