Shanghai index rises as blue chips recover

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

SHANGHAI'S key stock index jumped today thanks to a broad recovery among blue chips.

The Shanghai Composite Index gained 1.95 percent, or 51.80 points, to 2,703.53 at 3pm.

Gainers in the Shanghai market outnumbered losers 800 to 18 while two were unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 3.42 percent, or 26.88 points, to 811.76.

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 the real estate, banking and metal sectors were among the gainers today.

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, edged up 0.95 percent to 8.54 yuan.

China Southern Airlines, the nation's biggest carrier by fleet size, sprinted 3.94 percent to 7.13 yuan. China Eastern Airlines was up 3.97 percent to 6.55 yuan.

Xinjiang Ba Yi Iron & Steel Co, the steel maker controlled by Baosteel Group Corp, hiked the daily cap of 10 percent to 9.11 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 2.70 percent to 6.84 yuan. GD Power Development Co increased 2.26 percent to 6.34 yuan.

China increased the price of electricity paid to coal-fired producers on July 1, according to the National Development and Reform Commission yesterday. Prices in Guangdong Province will increase 2.6 cents per kilowatt-hour, while Beijing prices will increase by 1.03 cents and Shanghai by 2.14 cents.