Stocks News
- Chinese shares close 1.13% higher amid 'fragile' sentiment
Date: 10-Dec-2007 Sources: (Xinhua Online)
BEIJING, Dec. 7 (Xinhua) -- Chinese share prices rebounded on Friday with steel, transport and new energy leading the way.
However, Chen Hongzhou, an analyst with Galaxy Securities, believed the market sentiment remained fragile after Wednesday's Central Government announcement of a monetary policy shift from 'prudent' to 'tight' next year. He said this was done to control inflation and curb economic overheating.
China Railway Group, which debuted strongly on the Shanghai exchange on Monday, launched on the Hong Kong Stock Exchange on Friday with a less impressive but still strong gain of 27.3 percent higher than its initial public offering price.
The railway construction firm closed at 7.36 H.K. dollars (99 U.S. cents), 1.58 H.K. dollars higher than its 5.78 HK dollars IPO price.
On the Shanghai bourse, the group's shares rose 1.08 percent to 8.44 yuan. Its IPO price was 4.80 yuan.
Baoshan Iron and Steel regained ground upon continuing rumors about a possible bid by its parent company, the Baosteel Group, for mining giant Rio Tinto, rising 1.33 percent to 16.72 yuan.
The steel sector was the major market leader on Friday. Xining Special Steel soared to the daily 10 percent cap, while Minguang increased 9.97 percent to 16.21 yuan.
Taiyuan Stainless Steel increased 5.21 percent to 23.63 yuan, and Daye Special Steel was up 4.34 percent to 14.66 yuan.
Big gainers included transport firm Zhonghai Development that rose 3.89 percent to 32.3 yuan, and Chuantou Energy up 4.49 percent to 27.95 yuan.
Losses were largely incurred by some real estate and banking stocks.
The benchmark Shanghai Composite Index rose 56.68 points, or 1.13 percent, to close at 5,091.76.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange ended at 16,750.42 points, up 211.28 points, or 1.28 percent.
Gains outnumbered losses by 782 to 89 in Shanghai, and by 574 to 59 in Shenzhen.
The combined turnover of the two bourses increased to 107.98 billion yuan (14.6 billion U.S. dollars) from 95.3 billion yuan on the previous trading day.
The Hushen 300 Index, which tracks one-fifth of all stocks traded in the Shanghai and Shenzhen bourses, closed at 4,971.06 points, up 5.11 points, or 0.1 percent.
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