Stocks News
- Laiwu Steel shares soar 57.26 percent
Date: 25-Jan-2007 Sources: (Shenzhen Daily)
SHARES of Shanghai-listed Laiwu Steel Corp. rose 57.26 percent to 9.64 yuan (US$1.24) Thursday, their first day of trade in almost four months after being suspended while the firm carried out share reform.
Laiwu's sharp gain come after other stocks in China's steel sector gained strongly during its suspension.
Laiwu's shares last traded Sept. 19 when they closed at 6.13 yuan. However, the China Securities Journal said taking into account the diluting effects of share reform on the stock price, Laiwu's shares were worth 4.59 yuan Sept. 19, which means they have more than doubled from the adjusted base.
Under China's share reform program, the previously nontradable shares of listed companies are converted into tradable shares. Only a handful of companies are yet to complete the transformation, which the China Securities Regulatory Commission launched in April 2005.
Since Laiwu shares were suspended, China's stocks have risen sharply, with the Shanghai Composite Index doubling in that time.
China's steel stocks have performed well even in comparison to the overall market.
Baoshan Iron & Steel Co. stock price was at 8.77 yuan Thursday, more than double its 4.28 yuan closing price Sept. 19. Wuhan Iron & Steel Co. was at 7.88 yuan, up from 2.61 yuan when Laiwu last traded.
In February, prior to the surge in China's stocks and Laiwu Steel Corp.'s share reform, Laiwu Steel Group, its parent, agreed to sell a 38.41 percent stake in the listed unit to Arcelor Mittal, but the government has yet to give its final approval for the deal.
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