Stocks News
- Shares hit new record high as banks surge
Date: 27-Aug-2007 Sources: (Shenzhen Daily)
THE main stock index on the mainland climbed to a fresh record closing high for the fifth straight day Friday, boosted by banking shares after several banks reported slightly better-than-expected earnings.
The market was also encouraged by positive coverage in the domestic media of the index's rise above 5,000 points for the first time Thursday. The tone of the coverage suggested authorities would not intervene to cool the market any time soon.
The Shanghai Composite Index surged 1.49 percent to end at 5,107.668 points, after hitting an intraday high of 5,125.359. Turnover in Shanghai A shares edged up to a two-week high of 164.2 billion yuan (US$21.7 billion). But rising Shanghai stocks only marginally outnumbered losers by 426 to 415, showing substantial profit-taking in sectors other than banking after the index reached the 5,000-point milestone.
For the first time last week, the average premium of A shares over Hong Kong-listed H shares rose to 68 percent from 66 percent Thursday. Premiums had dropped since Monday after the government said it would let residents buy overseas stocks, which could eventually divert money into cheaper H shares.
Friday's rise brought the index's gains so far this year above 90 percent and some analysts think the risks of a significant pull-back in the short term are high.
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