Stocks News
- Stocks rebound into positive territory
Date: 17-Dec-2007 Sources: (Shenzhen Daily)
STRONG gains in spirit makers on hopes of an earnings boost from rising food prices, as well as a technical rebound in property developers pulled shares higher Friday.
The benchmark Shanghai Composite Index, which tumbled 2.70 percent Thursday and fell as much as 1.97 percent Friday morning, closed 1.01 percent higher at 5,007.911 points. The Shenzhen Composite Index rose 2.3 percent to 1,331.74.
But traders said they expected the market to decline this week led by a drop in property developers on continuing concerns the government would take more tightening measures in the real-estate sector. They put support for the benchmark Shanghai index at the psychologically important level of 4,800.
'If you're an investor in China and if you know food prices are likely to continue rising into the next year, the first thing you think of buying is liquor makers, because they are such strong brands in China,'said Orient Securities analyst Shen Zhengming.
China's food prices continue to rise, with data out last week showing the food component of the consumer price index up 18.2 percent in November from the same month last year.
Property developers also staged a technical rebound Friday after their sharp falls recently on concerns over the government's clampdown on the sector.
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