Stocks News
- Stocks hit new record after interest rate hike
Date: 18-Sep-2007 Sources: (Shenzhen Daily)
THE mainland's main stock index surged more than 2 percent to a fresh all-time high yesterday, led by heavily weighted financial and steel shares, despite an interest rate hike announced by the central bank after the close Friday.
The 0.27 percentage-point rate hike, after a jump in August consumer price inflation to a 10-year high, was smaller than the 0.54 percentage-point rise which some investors had feared, and which the central bank might have chosen if it had been determined to rein in asset prices by cooling the stock market.
Also, investors were encouraged by the market's strength despite a temporary drain of money to a record initial public offering (IPO) of shares in Shanghai by China Construction Bank and to two smaller IPOs in Shenzhen.
When money now tied up by those IPOs returns to the market late this week, it may push shares up further, traders said.
The Shanghai Composite Index closed up 2.06 percent at 5,421.392 points, after hitting an all-time, intraday high of 5,427.171.
That eclipsed its previous record high of 5,412.319, hit Sept. 6, and brought its gains so far this year to 103 percent.
The Shenzhen Component Index was up 1.54 percent.
Gaining Shanghai stocks far outnumbered losers by 718 to 120, as over 30 Shanghai shares rose their 10 percent daily limits.
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