Stocks News
- Shares hit record high
Date: 23-Jan-2007 Sources: (Shenzhen Daily)
TRANSPORTATION and retail companies surged yesterday on expectations of strong revenue in the run-up to the Chinese lunar New Year, which helped send the benchmark Shanghai Composite Index to a record closing high.
The benchmark index, which tracks both A and B shares, ended up 3.6 percent at 2933.19. Turnover on the index also hit a record high of 104.86 billion (US$13.48 billion), compared with Friday's 91.28 billion yuan. The Shenzhen Composite Index rose 4.2 percent to 700.20.
Yu Yang, an analyst at Guotai Junan Securities, said he expects the benchmark index to test the psychologically important 3,000 level this week.
'Investors had expected the government to map out some cooling measures targeting the apparently overheating stock market during the latest financial working conference, but no such measures took place, which triggered bullish sentiment on the market,'he said.
No measures to cool the stock market were made public at a key financial working conference in Beijing that ended Saturday. The benchmark index was up 1.3 times in 2006 on flush liquidity.
Shares were also helped by comments carried in domestic newspapers yesterday by China Securities Regulatory Commission Chairman Shang Fulin that the regulator would attract funds seeking long-term investments in the country's stock market.
Although Shang didn't give any concrete moves, the comments indicated the regulator's stance on the local stock market, analysts said.
Among the day's biggest gainers, bus and taxi operator Beijing Bashi surged 10 percent, the daily limit, to 9.96 yuan, and Daqin Railway also rose 10 percent to 10.07 yuan.
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