Heavyweights lead local market higher

By Ding Yining  |   2008-11-13  |     NEWSPAPER EDITION

THE Shanghai market closed higher yesterday on a strong performance by heavy-weights despite a downfall in the morning session.

The benchmark Shanghai Composite Index edged up 0.84 percent, or 15.5 points, to 1,859.11.

Turnover shrank to 40.9 billion yuan (US$5.99 billion) from Tuesday's 56.7 billion yuan. Gainers outnumbered losers 800 to 82, and 46 remained unchanged.

Domestic banks will extend more loans than last year, according to the People's Bank of China, the central bank. The extra money will be mainly used to support major infrastructure projects.

"The fluctuation won't last for a very long time and the stimulus package by the central government will help stabilize investor confidence," according to Hua Weilin, an analyst with Chinalion Securities.

The construction and financial sectors continued to lead the surge.

Long Jian Road and Bridge Co surged the daily limit of 10 percent for the second day to close at 3.15 yuan. Fujian Cement Inc also rallied 10 percent to close at 4.16 yuan.

Shanghai Pudong Development Bank added 2.6 percent to 14.18 yuan. The Industrial Bank Co was up 3.42 percent to 15.11 yuan. China Construction Bank edged up 0.92 percent to 4.39 yuan.

The Industrial and Commercial Bank of China, the nation's biggest lender and the second-largest stock on the index based on market capitalization, was up 0.51 percent to 3.94 yuan.

CITIC Securities, the country's largest brokerage, advanced 4.28 percent to 19.49 yuan. Haitong Securities added 2.97 percent to 13.17 yuan.

Real estate developers rebounded in the second half of trading. China Vanke Co, the nation's largest developer, was up 2.07 percent to 6.40 yuan. Gemdale Corp jumped 5.94 percent to 5.71 yuan.

"The index kept fluctuating today (yesterday) and we think whether turnover can rise to a higher level will have much influence over the performance of the index," said Shenyin Wanguo Securities.