Guideline lifts stocks higher

By Ding Yining  |   2008-8-8  |     NEWSPAPER EDITION

THE Shanghai stock market ended slightly higher yesterday, led by Yangtze River Delta-based companies after the central government announced a guideline for the opening up and development of the delta region on Wednesday.

The benchmark Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 8.21 points, or 0.3 percent, to end at 2,727.58 points. Gainers outnumbered losers 508 to 327 and 72 stocks were unchanged. Turnover totalled 38.72 billion yuan (US$5.65 billion), a drop from 41.13 billion yuan on Wednesday.

The executive meeting of the State Council, held on Wednesday, has targeted the restructuring of the industry in the delta region and fostering the development of the modern service sector.

Shanghai-based Whitecat Shareholding Co Ltd surged to the daily cap of 10 percent to end at 7 yuan. Both China Hi-tech Group and Y.U.D Yangtze River Investment Industry Co Ltd rose 10 percent. Shanghai Shentong Metro Co Ltd, which runs the city's subway system, added 7.3 percent to 8.53 yuan.

Oil prices fell on Wednesday to below US$118 a barrel, nearly US$30 below the record high. The price has dropped 5 percent in the past three trading days.

Sinopec, the country's biggest oil refiner, gained 2.59 percent to 11.88 yuan and PetroChina, the biggest oil producer, added 0.54 percent to close at 14.95 yuan.

Air China, the country's biggest carrier by market value, fell 2.62 percent to 9.66 yuan. China Southern Airlines lost 3.35 percent to 7.51 yuan while China Eastern Airlines bucked the decline by soaring 3.79 percent to 7.62 yuan.

''At the moment investors seem insecure and uncertain, and the fluctuation would probably last for some time,'' said Wu Jun, an analyst with China Galaxy Securities Research.