Stocks News
- Stock index up 1.58%to reach record high
Date: 27-Mar-2007 Sources: (Shenzhen Daily)
THE country's main stock index rose 1.58 percent yesterday, hitting a record high, as steel shares such as Baoshan Steel led gains in heavy trade.
The Shanghai Composite Index ended at 3,122.811 points, just off its intraday high of 3,123.179. It gained for the sixth straight day.
Turnover in Shanghai A shares climbed to a heavy 109.3 billion yuan (US$14.1 billion) from 104.1 billion yuan Friday. Gainers outnumbered losers by 737 to 114.
'Money is ample as there are lots of newly created funds trading. The market looks like it's moving up into a new range of 3,200 to 3,500 points for the next two months,'said Yang Weicong, analyst at United Securities.
Steel shares were strong for the second straight day, with Baoshan Steel rising 3.19 percent to 9.39 yuan on the view that they had lagged the recent rally.
Ship engine maker Hudong Heavy Machinery rose 2.09 percent to 69.33 yuan. Traders said steel and machinery plays were becoming a target for buying by funds, to some extent eclipsing bank and property shares where less value was seen after sharp rises since the middle of 2006.
'Many foreigners regard steel as a cyclical sector. To me, it is still a sunrise industry,'said Lu Jun, chief investment officer of China International Fund Management, JP Morgan's fund management joint venture in Shanghai.
'The fact that strength has shifted from one sector to another in heavy volume during the six-day rise gives one confidence about the short-term outlook,'said Zhang Qi, analyst at Haitong Securities.
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