Blue chips lead gains as bourse rises 1.7%

By Joyce Pan  |   2009-7-3  |     NEWSPAPER EDITION

SHANGHAI'S key stock index rose nearly 2 percent yesterday amid upbeat market sentiment after the barometer passed the psychological 3,000 mark on Wednesday.

The benchmark Shanghai Composite Index added 1.73 percent, or 52.1 points, to close at 3,060.25. Turnover rose to 181.11 billion yuan (US$26.63 billion) from 153.79 billion yuan on Wednesday.

"Market confidence grew greatly after the local benchmark index broke the 3,000 barrier, leading to increased speculation demand. Heavyweights including the financial sector, gold producers and nonferrous metals shored up the market," said Wan Bing, an analyst from GF Securities Co.

Heavyweights and blue chips led the gains. PetroChina, the biggest component index and China's top oil producer, gained 3.29 percent to 15.06 yuan.

Sinopec, Asia's largest oil refiner, picked up 3.9 percent to 11.2 yuan.

China Pacific Insurance (Group) Co grew 6.13 percent to 24.95 yuan. Ping An Insurance (Group) Co rose 5.18 percent to 54.98 yuan while China Life Insurance Co added 2.17 percent to 29.15 yuan.

Zijin Mining Group jumped 7.36 percent to 10.79 yuan. Shandong Gold Mining Co was up 0.98 percent to 63.73 yuan. Zhongjin Gold Corp inched up 0.2 percent to 64.94 yuan.

"But less-than-expected corporate earnings for the first half may limit the rebound of the market," Wan added.

Lenders had mixed performances. Shanghai Pudong Development Bank edged up 1.41 percent to 24.48 yuan. China Merchants Bank dipped 0.22 percent to 22.98 yuan. The Bank of China rose 0.65 percent to 4.66 yuan, and the Bank of Communications climbed 3.36 percent to 9.85 yuan.