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  • Banking sector leads market to small gain
    Date: 12-Mar-2007 Sources: (Xinhua Online)

    Shanghai shares closed slightly higher Friday on the back of a strong performance in the banking sector although most stocks fell.

    The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, rose 0.34 percent to 2,937.91, the fourth straight winning session.

    A shares gained 0.35 percent to 3,087.02, while the B chips dropped 1.35 percent to 169.75.

    The Shenzhen Composite Index, tracking the smaller of the country's two bourses, dipped 0.34 percent to 760.56.

    More than half of the stocks on both markets fell. Total trading volume on the two markets was nearly 140 billion yuan (18 billion U.S. dollars).

    'Investors were quite cautious this week despite some good news after the big plunge on Feb. 27, but the blue chips, especially the banks, helped push the index slightly higher,' said Dong Zheng, an analyst with Daton Securities.

    On Feb.27, the benchmark Shanghai index, after reaching a record high the previous day, plunged nearly nine percent, the biggest decline in a single day in 10 years.

    Meanwhile, investors are rushing to open stock accounts based on the widely accepted idea that it is still a bullish market. For Tuesday and Wednesday alone, nearly 800,000 accounts were opened nationwide.

    The Industrial and Commercial Bank of China advanced 2.64 percent to 5.05 yuan. Bank of China added 3.28 percent to 5.04 yuan. China Merchants Bank edged up 0.62 percent to 16.3 yuan.

    The nonferrous metal sector was also active yesterday led by Yunnan Chihong Zinc & Germanium Co, which rose 1.19 percent to 100.34 yuan.

    Citic Securities slipped by 0.59 percent to 42.36 yuan after gaining in the previous three sessions.



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