Blue chips push Shanghai market higher at midday

By Lydia Chen  |   2008-11-19  |     ONLINE EDITION

SHANGHAI’S key stock index jumped in the morning session as investors jumped back into blue chips.

The benchmark Shanghai Composite Index gained 2.26 percent, or 43.06 points, to 1,945.49 points at 11:30am.

Losers outnumbered gainers 631 to 176 and 14 did not change.

The Shenzhen Composite Index, which tracks the smaller domestic market, was up 1.76 percent, or 9.24 points, to 534.22 points.

Shares in the real estate and banking sectors rallied in the morning session while heavyweights in oil-related stocks also contributed to the morning gains.

Lujiazui Finance & Trade Zone Co surged the daily cap of 10 percent to 14.72 yuan (US$2.16). Beijing-based Financial Street climbed 2.68 percent to 7.65 yuan. Huaxia Bank added 5.30 percent to 8.34 yuan.

Major brokerages closed higher in the morning after the number of new investment accounts in China rose 55 percent last week from the week earlier.

Citic Securities Co, the nation's largest brokerage by market value, edged up 0.69 percent to 19.08 yuan. Hongyuan Securities rose 2.98 percent to 13.49 yuan.

Investors opened 261,846 accounts to trade equities on the Shanghai and Shenzhen exchanges from November 10 to November 14, compared with 168,979 accounts the previous week, according to data from the China Securities Depository and Clearing Corp.

PetroChina, the biggest market heavyweight, hiked 5.32 percent to 11.67 yuan while Sinopec, the country’s largest oil refiner, added 8.67 percent to 8.27 yuan.

Elsewhere, car makers performed strongly after a government official said the country will introduce a retail fuel tax “soon.”

FAW Car Co, the Chinese partner of Mazda Motor Corp advanced 6.53 percent to 6.36 yuan. Tianjin FAW Xiali Automobile Co, the Chinese maker of US$5,000 compact cars, surged 9.90 percent to 3.33 yuan. SAIC Motor Corp, China’s biggest auto maker rose 2.97 percent to 5.90 yuan.