Turnover down as Shanghai markets close higher
Shanghai markets closed higher on the last trading day of the week with telecoms companies leading the gains.
The benchmark Shanghai Composite Index climbed 0.74 percent to 2,553.83 points while turnover edged down to 122.3 billion yuan (US17.98 billion).
The SCI posted a second weekly gain of 1.55 percent in 2019 with automakers, brokerages and the telecommunication sector the most actively traded shares.
Telecoms stocks and communication equipment makers pushed up the index after Minister of Industry and Information Technology Miao Wei told China Central Television that China will issue temporary licenses for fifth-generation wireless networks in selected domestic cities this year.
The move would boost commercial applications of high-speed networks, and would also stimulate industry upgrades as well as technology and business model innovation.
Jiangsu Etern Co Ltd and Beijing Bewinner Communications both surged the daily limit of 10 percent.
Guosen Securities chief strategist Yan Xiang said in a research note that recent market sentiment has dampened valuations, but earnings still have relatively large growth potential.
However, market sentiment still remains uncertain over trade talks progress and worries about deflation risks.
Nomura Securities said in a research note that it expects the Producer Price Index to soon return to negative territory, reducing inventory stocks and exerting further downward pressure on China’s growth.