Strength of property and steel puts index above 2,600 points

By Ding Yining  |   2009-5-13  |     NEWSPAPER EDITION

SHANGHAI'S key stock index closed above 2,600 points yesterday after strong performances by property shares and steel producers.

The Shanghai Composite Index added 1.49 percent, or 38.42 points, to close at 2,618.17 points. Turnover was 113.5 billion yuan (US$17.0 billion) compared to Monday's 172.3 billion yuan.

"We expect the blue chips and heavyweights will have better performance in the near future and the index may climb to 2,800 points although there will be fluctuations before that," a research note by Guoyuan Securities said.

China Vanke Co, the largest listed domestic property developer, rose 6.73 percent to 10.46 yuan. Gemdale Corporation was up by the daily limit of 10 percent to 15.10 yuan. China Merchants Property Development Co Ltd rose 3.92 percent to 28.90 yuan.

Baoshan Iron and Steel Co rose 6.33 percent to 6.55 yuan. Inner Mongolian Baotou Steel Union Co Ltd added 2.72 percent to 3.78 yuan. Maanshan Iron & Steel Co Ltd was up 6.07 percent to 4.37 yuan.

Coal producers also gained. Shanxi Coking Co Ltd was up 3.30 percent to 7.19 yuan. Zhengzhou Coal Industry & Electric Power Co Ltd climbed 8.75 percent to 8.58 yuan. Shanxi Antai Group Co Ltd rose 4.83 percent to 6.51 yuan.

Banks reversed morning losses. The Industrial and Commercial Bank of China rose 0.23 percent to 4.32 yuan. The Bank of China edged up 0.55 percent to 3.63 yuan. Shanghai Pudong Development Bank added 1.97 percent to 25.39 yuan. The Bank of Communications was up 0.41 percent to 7.33 yuan.

Heavy-machinery makers rose after the State Council issued guidelines to boost the equipment manufacturing sector. Shanghai Mechanical & Electrical Industry Co Ltd gained 4.83 percent to 13.90 yuan. Aerosun Corp rose 4.22 percent to 8.65 yuan. Changsha Zoomlion Heavy Industry Science and Technology Development Co was up 4.18 percent to 20.71 yuan.