Improving production pushes up benchmark | Shanghai Daily

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December 2, 2009

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Improving production pushes up benchmark

SHANGHAI'S key stock index extended the gains yesterday after a measure of China's manufacturing activities indicated that the country's industry production was steadily improving.

The benchmark Shanghai Composite Index rose 1.25 percent, or 40.06 points, to close at 3,235.36. Turnover grew to 191.2 billion yuan (US$27.9 billion) from 160 billion yuan on Monday.

The Purchasing Managers Index settled at 55.2 last month, the same as October and the highest in 18 months, the China Federation of Logistics and Purchasing said yesterday. The PMI has been above 50 for nine straight months and a reading above 50 indicates expansion.

"Economic growth is showing signs of stabilization and the flat figure may indicate that economic recovery has turned more consumption-driven than led by massive government spending," said Su Haiyan, an analyst with Guangdong Foretech Investment Consultants Co. "The government's efforts to boost domestic consumption may lead to more positive results in the future."

Consumer-related shares remained strong on the government's call to boost consumption by expanding the use of credit and online shopping.

Among retailers, Qingdao Aucma Company surged 10 percent to 7.56 yuan, Beijing Hualian Hypermarket Co gained 5.9 percent to 9.69 yuan and Shanghai Bailian Group jumped 2.9 percent to 17.92 yuan.

Steel producers were among the gainers. Baoshan Iron & Steel Co soared 7.8 percent to 8.81 yuan.

Xinjiang Ba Yi Iron & Steel Co increased 2.3 percent to 13.96 yuan. Wuhan Iron and Steel was up 3.9 percent to 8.44 yuan.

Zijin Mining Group expanded 7.2 percent to 10.72 yuan after announcing its takeover of Australian miner Indophil Resources and a 37.5 percent stake in Southeast Asia's largest undeveloped copper-gold deposit.

China Eastern Airlines Corp rallied 2.4 percent to 6.30 yuan after it won approval from China's securities regulator to take over rival Shanghai Airlines Co.

Shanghai Air climbed 2.2 percent to 6.96 yuan.




 

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