Stocks News
- Stocks up on State share sale limits
Date: 10-Jul-2007 Sources: (Shenzhen Daily)
DOMESTIC shares extended their gains yesterday after government moves to limit the sale of State-owned shares in listed companies eased concerns over a flood of shares coming onto the market.
But shares could fall back soon as the move wasn't enough to offset the potential effects of recent tightening measures, such as an expansion of the country's overseas investment program and a planned issuance of 1.55 trillion yuan of special treasury bonds, said Wang Junqing, an analyst at Guosen Securities.
The benchmark Shanghai Composite Index ended up 2.7 percent at 3883.22. It had rebounded 4.6 percent Friday following steep falls in the previous two days.
'It will be hard for the Shanghai index to break through the 60-day moving average,'said Wang Sheng, an analyst at Haitong Securities. The average is at 3917 now.
The Shenzhen Composite Index rose 3.2 percent to 1100.61.
Regulators imposed restrictions late Friday on the sale of State-owned shares in listed companies, which came after about 97 percent of companies on the mainland's bourses converted or were in the process of converting nontradable shares, mainly held by the State.
'The move could help moderate the pace of the State unloading shares,'said Guosen's Wang, who added that the move shows regulators want to boost the confidence of investors.
Coal firms ended sharply higher on surging domestic demand for energy, said Haitong's Wang.
Sichuan Shengda Industrial jumped by the daily 10 percent limit to 13.20 yuan (US$1.74), Shanxi Xishan Coal & Electricity Power was up 9.7 percent at 29.99 yuan and Shanxi Guoyang New Energy rose 8.9 percent to 40.78 yuan.
Listed companies are scheduled to issue their first-half financial reports from this week through the end of August.
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