Shanghai market rises the most in two weeks

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

SHANGHAI'S key stock index gained the most since June 19 thanks to a wide-spread rally.

The Shanghai Composite Index jumped 4.59 percent, or 122.65 points, to 2,792.54 at 3pm.

Gainers in the Shanghai market outnumbered losers 803 to eight.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 3.96 percent, or 32 points, to 839.19.

Market heavyweights such as China Petroleum & Chemical Corp, PetroChina Co and Industrial & Commercial Bank of China led the market higher.

China Petroleum & Chemical Corp, or known as Sinopec, the country's biggest oil refiner, surged 5.20 percent to 9.91 yuan (US$1.44) while PetroChina, the biggest oil producer and the biggest market heavyweight, advanced 3.06 percent to 14.82 yuan.

Sinopec received 2.51 billion yuan in rebates on value-added taxes levied on gasoline and diesel imports in the second quarter, Xinhua news agency said on Friday, citing the finance ministry.

ICBC, the second-largest heavyweight in the Shanghai market, was among rising lenders today.

ICBC gained 3.54 percent to 4.97 yuan. The company last week forecast its first-half profit would rise by more than 50 percent.

China Merchants Bank Co, the nation's biggest dual-currency credit-card issuer, increased 6.48 percent to 22.67 yuan. China Citic Bank, a unit of China's largest investment firm, rose 7.27 percent to 5.61 yuan.

Citic Bank said it expects first-half profit to rise more than 150 percent on higher interest revenue. Net income was 3.2 billion yuan a year earlier. China Merchants said its first-half profit may have more than doubled as the company extended more loans. Net income was 6.12 billion yuan a year earlier. Both banks cited unaudited preliminary figures.

Air China, the nation's largest carrier by market value, leaped the daily cap of 10 percent to 9.52 yuan while China Southern Airlines also soared 10 percent to 7.92 yuan.