Shanghai stocks close at highest level since May last year

Shanghai stocks on Tuesday closed at their highest level since May 22 last year, although momentum wasn't as strong as the gains of the last two days.  

The benchmark Shanghai Composite Index closed slightly higher at 0.2 percent to 3,176.82 points, and turnover was 462.7 billion yuan (US$68 billion). 

On Tuesday, gains in the morning session were largely wiped out by losses in the financial sector and food and liquor.

The growth enterprise market index went down 0.38 percent after investors took gains.

The new energy sector was among the gainers. Befar Group Co advanced 3.43 percent to 7.54 yuan, and Jiangsu Sopo Chemical Co Ltd climbed 1.63 percent to 8.12 yuan.

Bright Dairy & Food Co lost 0.78 percent and Inner Mongolia Yili Industrial Group Co shed 1.55 percent.

Founder Securities analyst Hu Guopeng said the recent earnings release from listed companies might bolster future rebounds.

Airliners were also under pressure — Air China lost 1.71 percent and Hainan Airlines Holding Co fell 0.89 percent to 2.22 yuan.

Greatwall Securities estimated the Shanghai index could hit 4,000 in 2019 and that the best performers would include high-tech shares, financial sectors as well as infrastructure stocks.