Stocks News
- Shares end up amid record turnover
Date: 29-Mar-2007 Sources: (Shenzhen Daily)
BANKS rose on a strong earnings outlook yesterday, helping the benchmark Shanghai Composite Index reverse early losses and close higher for the eighth session in a row amid record turnover.
The benchmark index, which tracks both A and B shares, ended up 1.1 percent at 3173.02, its sixth record close in as many sessions, after falling as much as 2.8 percent during the day on profit-taking. Turnover on the index surged to 152.75 billion yuan (US$19.76 billion) from 115.03 billion yuan the previous day.
The Shenzhen Composite Index closed 0.7 percent lower at 835.75, after hitting its sixth record close in a row Tuesday.
Qian Qimin, an analyst at Shenyin & Wanguo Securities, said the market will likely stay strong Thursday and Friday, the last two sessions of the current quarter, on demand from securities funds for window-dressing purposes.
But the market may struggle to make significant gains in the weeks ahead, said analysts.
'Disputes over whether there is a bubble in the market could arise, making further gains tough, especially after the benchmark index rises above the 3200 level,'said Yang Weicong, a strategist at United Securities.
He said banks would be ideal picks in the near term, citing strong earnings prospects for the sector.
Industrial Bank gained 3.1 percent to 25.97 yuan after posting a 54 percent rise in net profit for 2006, which followed recent reports of robust earnings for the year by several other banks.
Heavyweight banks rose, supporting the overall market.
Industrial & Commercial Bank of China was up 2.7 percent at 5.30 yuan and Bank of China rose 2.9 percent to 5.33 yuan.
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