Stocks News
- Benchmark index bounces back to 2,900-point mark
Date: 15-Feb-2007 Sources: (Xinhua Online)
The benchmark Shanghai Composite Index, a major index of Chinese shares, bounced back to 2,900 points on Wednesday after slumping below the 2,600-mark last week.
The ten-percent tumble resulted in the index standing at 2,612.54 points on Feb. 5 following a host of warnings about the potential risks of continual investment in the bullish stock market.
But the index, which broke 2,900 points for the first time in history on Jan. 22, closed at 2905.09 points on Wednesday, gaining73.22 points over the previous day's trading.
The rise came after 120 companies listed in Shanghai and Shenzhen had issued their annual reports by Feb. 13, showing a 85-percent increase of in net profits.
Meanwhile, the component index of the smaller Shenzhen Stock Exchange broke 8,300 points once again, closing at 8315.91 points, up 211.64 points.
The two bourses registered an aggregate turnover of 114.77 billion yuan (14.71 billion U.S. dollars), compared with 95.59 billion yuan on the previous trading day.
About 80 percent of the shares moved up, including 785 on the Shanghai Stock Exchange and 552 on the Shenzhen Stock Exchange. Fifty of them, like China Jialing, went up by the maximum ten percent.
Shares of the electronic, pharmaceutical, fishery and metal sectors were the the main driving force behind the hikes.
The heavyweight Industrial and Commercial Bank of China gained 2.65 percent to close at 5.04 yuan, China Life edged up 1.93 percent to finish at 36.41 yuan and the Bank of China rose 2.37 percent to 4.75 yuan.
Share prices will remain at a high level before and after the Spring Festival as Chinese listed companies are certain to see soaring profits for 2006, said analysts.
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