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  • Shares gain after rocky week
    Date: 5-Mar-2007 Sources: (Shenzhen Daily)

    SHARES rose Friday as investors snapped up bargain blue chips following losses earlier in the week.

    The benchmark Shanghai Composite Index gained 1.2 percent to 2,831.53. The Shenzhen Composite Index rose 1.5 percent to 730.55.

    It has been a roller-coaster week for domestic shares. On Tuesday, the Shanghai index tumbled nearly 9 percent, triggering a sell-off in global markets, before rebounding almost 4 percent Wednesday. The index fell nearly 3 percent Thursday.

    Trading was heavy in large cap shares like Baoshan Iron & Steel, which was up 0.9 percent to 9.40 yuan (US$1.21) in late trading Friday, and China Yangtze Power, which climbed 1.1 percent to 11.57 yuan.

    Investors remain cautious amid the absence of market-supporting measures from regulators and analysts cautioned that the potential for further declines remains after last year's rally, which boosted Shanghai shares by 130 percent.

    'I think today's bouncing-back is just a technical correction. There's no obvious direct cause for it,'said Peng Yunliang, an analyst with Shanghai Securities.

    'I expect there will be a period of correction in the coming week too,'he said.

    Despite last week's volatility, the Shanghai Composite Index is 5.8 percent above where it started the year.



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