Stocks end 1.2% higher in morning session

By Ding Yining  |   2008-11-14  |     ONLINE EDITION

SHANGHAI’S key stock index ended higher in the morning session amid speculation that more measures will be taken to assure economic growth.

The benchmark Shanghai Composite Index added 1.2 percent, or 23.19 points, to 1,950.81 points.

Gainers outnumbered losers 731 to 83 and 94 remained unchanged. Turnover was 44.8 billion yuan (US$6.6 million).

The Shenzhen Composite Index, which tracks the smaller domestic market, rose 2.21 percent, or 11.57 points, to 534.14 points.

The People’s Bank of China issued 10 billion yuan in central bank bills yesterday, the yield level of which lowered 81 basis points from the previous week to 2.0156 percent. The market speculated that this indicated another cut in interest rates.

Real estate developers gained were among stocks to gain this morning. Both Beijing Urban Construction Investment & Development Co Ltd and Beijing Airport Hightech Park Co Ltd surged the daily limit of 10 percent. Shanghai Shimao Co Ltd climbed 7.12 percent to 5.72 yuan.

The banking sector was mixed. Bank of China edged up 0.60 percent to 3.36 yuan. Industrial &Commercial Bank of China added 1.24 percent to 4.09 yuan while Bank of Communications dipped 0.19 percent to finish the session at 5.12 yuan.

The energy sector posted gains this morning. China Coal Energy Co Ltd added 2.17 percent to 7.54 yuan. Shanxi Guoyang New Energy Co Ltd rallied 5.31 percent to 10.91 yuan.