Food and agriculture leading stock gains

Yuan Luhang
China's main equity indexes edged up on Tuesday, with disruption of markets around the world due to the COVID-19 pandemic driving up prices for food. 
Yuan Luhang

China’s main equity indexes edged up on Tuesday, led by food and agriculture shares.

At close, the benchmark Shanghai Composite Index was up 0.11 percent at 2,750.30 points, while the smaller Shenzhen Component Index rose by 0.58 percent to 9,962.30 points. The blue chip CSI300 Index gained 0.33 percent to 3,686.16 points.

Turnover on the two major bourses was 561.8 billion yuan (US$79.07 billion), compared with the previous session’s 633.1 billion yuan.

Chinese mainland markets saw a 1.2-billion-yuan net inflow of overseas capital via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

All companies in the agriculture, forestry, animal husbandry and fishery industries gained, apart from one. 

Six food and agriculture shares hit the daily 10 percent limit while 38 shares in the sector increased by over 6 percent.

Fujian Tianma Science and Technology Group Co Ltd, Tangrenshen Group Co Ltd and New Hope Liuhe Co Ltd all increased by 10 percent.

With the current global outbreak of COVID-19 disrupting agricultural and food systems around the world, prices will be driven up by panic-driven reactions.

TF securities said soybeans, with over 80 percent import dependency, will more likely rise in price, as will corn. Supplies and inventories of wheat and rice are sufficient, and their rises will not last.

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