Stocks News
- Chinese shares bounce back timidly
Date: 26-Jun-2007 Sources: (Xinhua Online)
BEIJING, June 26 (Xinhua) -- All three major Chinese stock indices climbed slightly after slipping for two trading days in a row, with scientific and technological sectors as the major driving force in the late session.
The benchmark Shanghai Composite Index concluded Tuesday's trading at 3,973.37 points, up 32.29 points, or 0.82 percent, with a daily transaction volume of 126.76 billion yuan (16.7 billion U.S. dollars).
The key stock index, which covers both yuan-denominated A shares and foreign-currency-denominated B shares, moved between 3,818.85 and 3,976.19 points.
The Component Index on the Shenzhen Stock Exchange crept up 110.16 points, or 0.84 percent, to close at 13,219.41 points with a turnover of 61.41 billion yuan (8.1 billion dollars).
Analysts said speculation over a possible new interest rate hike and resignation of Chen Tonghai, chairman of Sinopec, a heavyweight on the Shanghai bourse, contributed to selling, which dampened the market mood in the morning session.
It is rumored that Chen was involved in the alleged corruption case involving former Shanghai leader Chen Liangyu, but analysts said the resignation would not affect the performance of the largest oil refiner in China.
Sinopec was driven down by the rumor in the morning session, but managed to bounce back slightly at the end of the day to close at 98.98 yuan, up 0.27 percent.
The analysts attributed end of the bearish run in the late session to the fact that no 'bad' news had come yet from the monetary authorities.
Most other heavyweights climbed gradually with China Life, the country's largest life insurer, a major exception, and falling 2.52 percent to 43.14 yuan.
The Industrial and Commercial Bank of China rose 0.6 percent to 4.99 yuan, while the Bank of China was up 0.4 percent to 5.03 yuan.
Despite the lackluster in the morning session, defense industry shares performed well all the way following the recent promulgation of new guidelines to transform military industrial enterprises into joint-stock companies. According to the guidelines, the shareholding reform might allow limited foreign investment in China's weapons makers.
The Shanghai exchange recorded 611 gains and 357 losses and Shenzhen bourse, 452 gains and 209 losses.
On Tuesday, the Hushen 300 Index, which tracks 300 companies on the Shanghai and Shenzhen stock exchanges, closed at 3,928.21 points, up 50.62 points, or 1.31 percent, from the previous close.
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