Stocks News
- Stocks continue to rise as PetroChina surges
Date: 21-Dec-2007 Sources: (Shenzhen Daily)
BARGAIN hunting in PetroChina lifted the mainland's benchark index Thursday, with the market also continuing to be boosted by a report that regulators will allow mutual funds to start selling again.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 2.1 percent at 5,043.54. The Shenzhen Composite Index rose 1.4 percent to 1,357.39.
Analysts said they expected the Shanghai index to test the psychological resistance of 5,100 Friday, but further upside was unlikely due to caution that there might be another interest rate hike before the end of the year.
Thursday's turnover rose slightly to 89.5 billion yuan (US$12.09 billion) from Wednesday's 87.9 billion yuan. Over the past two weeks, the share volume has exceeded the 100 billion yuan mark for five out of 10 sessions.
PetroChina ended up 3.1 percent at 30.50 yuan, after it closed Wednesday's session at 29.59 yuan, down 32.7 percent from its first day of trading on the Shanghai bourse Nov. 5. Analysts said 30 yuan was a reasonable valuation for the stock.
'Indexes don't always tell the whole story. It was mainly PetroChina that did most of the work today,'said Industrial Securities analyst Zhang Yidong.
PetroChina had a weighting of 20 percent in the Shanghai index, and each 5 percent rise in the company's stock increased the overall index by 100 points, analysts said.
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