Cyclical industries push up stock market
China shares jumped on Monday, led by coal mining and non-ferrous metals.
At close, the Shanghai Composite Index was up 1.09 percent at 3,414.49 points. The Shenzhen Component Index advanced 0.74 percent to reach 13,955.28 points.
The bluechip CSI300 index soared 1.25 percent to 5,005.03 points — its highest closing level in more than five years.
Turnover on the two major bourses grew to 953.9 billion yuan (US$145.2 billion).
Foreign investors bought 10.05 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.
Cyclical industries, whose success is heavily determined by the economy, represented by steel, coal, petroleum, non-ferrous metals and automotive industries, posted strong performances.
Coal mining and non-ferrous metals surged 4.95 percent and 2.59 percent, respectively.
Securities analysts are optimistic about a valuation recovery for leading cyclical firms and high-growth cyclical companies, citing robust downstream demand.
Essence Securities said in a note that “cyclical firms are expected to continue their gains in the A-share market as hopes of a vaccine-led recovery boost the market.”