Stocks News
- Shares reach new high
Date: 6-Aug-2007 Sources: (Shenzhen Daily)
MAINLAND shares rose to a new record high Friday, surging back from a slump prompted by worries about U.S. mortgages.
The benchmark Shanghai Composite Index rose 3.5 percent to close at 4,560.77 points. The Shenzhen Composite Index also reached a new high, rising 2.3 percent to 1,323.40.
The Shanghai stock index also set new record highs last Monday and Tuesday, driven by expectations of strong corporate profits. Stocks fell Wednesday as Asian markets reeled from a Wall Street sell-off prompted by concern that troubles over subprime mortgages might spread. But shares rose again Thursday, recovering some of their losses.
Companies have been forecasting strong profit growth amid a boom that saw China's economy expand by 11.9 percent last quarter, its fastest quarterly growth since 1995.
The Shanghai index is up more than 60 percent this year, after more than doubling last year.
Friday, the biggest gains were among property and financial shares.
Analysts said they expected the market to edge even higher in coming sessions, led by a revival of speculative interest.
'The property sector is already overvalued, but its recent gains have spurred a strong appetite for property shares,'said strategist Wang Sheng at Haitong Securities. 'Investors seem unlikely to step back until the sector is way too overheated.'
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