Shanghai stocks rebound slightly | Shanghai Daily

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Shanghai stocks rebound slightly

SHANGHAI'S key stock index rebounded more than 1 percent today, led by strong performance of resource-related shares on speculation that signs of inflation would push up prices.

The benchmark Shanghai Composite Index added 1.44 percent to 2,936.19 points. Turnover shrank to 88.5 billion yuan (US$13 billion) from 99.9 billion yuan on Monday. Gainers outnumbered losers 793 to 77, with 14 stocks unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, rose 1.45 percent to close at 1,013.28 points.

"Recent gains of gold and crude prices have spurred expectations of future inflation, which will benefit resource-related sectors such as coal and nonferrous metals," Zhou Ronghua, an analyst at TX Investment Consulting Co.

China Shenhua Energy Co, the nation's biggest coal producer, increased 2.7 percent to 33.06 yuan, and Datong Coal Industry Co surged 5.87 percent to 39.49 yuan.

Lenders were among the gainers after Central Huijin Investment Co, China's US$300-billion sovereign wealth fund, pledged to continue to buy shares in the country's three biggest listed state-owned banks in the open market over the next 12 months.

"The investment was reasonable because lenders are undervalued in this round of correction," said Mu Qiguo, a United Securities Co analyst. "The move also indicates the government will not sharply reduce holdings when a record 2 trillion yuan worth of locked-up shares become tradable this month, which quashed market concerns over broad selling-off."

Bank of China gained 1 percent to 4.03 yuan. Industrial & Commercial Bank of China, the nation's biggest listed lender, inched up 0.6 percent to 4.99 yuan. China Merchants Bank Co jumped 2.6 to 15.99 yuan.

China is to release third-quarter economic growth, consumer price and other economic data next week. The market is anticipating the economy has expanded in this period, driving its growth to the 8 percent full-year target.



 

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