Shanghai stocks end the week with a rally

Shanghai stocks rose for the sixth day, pushing the index to a weekly gain of 1.13 percent, as overall performance was boosted the financial shares and liquor makers.

SHANGHAI stocks rose for the sixth day, pushing the index to a weekly gain of 1.13 percent, as overall performance was boosted the financial shares and liquor makers.

The benchmark Shanghai Composite Index advanced 0.31 percent to 3,407.57 points with turnover dipped to 212 billion yuan(US$31.6 billion). 

Financial shares rebounded following positive third-quarter earnings reports. China Life Insurance was up 0.58 percent to 29.47 yuan after saying net profit for the first three quarters surged 98.3 percent. China Merchants Bank hiked 5.84 percent while Industrial and Commercial Bank of China jumped 2.31 percent. 

Consumer sector was led by liquor makers with fourth quarter expected to be a peak season for consumption. Kweichow Moutai continued Thursday’s surge, hiking 7.36 percent. Annie Kouzi Distillery Co advanced 1.51 percent to 50.56 yuan. 

“Most consumer goods shares would continue to benefit from the consumers’ adoption of premium products and most of their profitability still has room for growth in the future,” Guotai Jun’an Securities wrote in a research note.  

Property shares were among the losers. China Vanke Co shed 0.11 percent to 27.50 yuan and Shanghai Lujiazui Finance & Trade Zone Development Co was down 1.51 percent to 22.84 yuan. Beijing Centergate Technologies Holding CO lost 1.93 percent. 

TX Investment estimate the market to go through a short period of adjustment next week with liquidity not sufficient to support further climb. 

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