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Stocks up on better indicators

(China Daily)
Updated: 2009-04-30 07:49

An investor takes notes on stock performance in a brokerage in Haikou, Hainan province. [China Daily]

The mainland stocks rose 2.78 percent to their highest close in more than a week yesterday, led by financial and property shares as the market snapped a three-day losing streak.

The Shanghai Composite Index closed at 2468.192 points. Turnover in Shanghai A shares rose to 120.8 billion yuan from Tuesday's 90.6 billion yuan.

Pudong Development Bank jumped 9.55 percent to 23.06 yuan ahead of its first-quarter earnings due for release today.

Property sector leader China Vanke Co gained 4.01 percent to 8.30 yuan after reporting earlier this week that its profit rose 7.1 percent in the first quarter.

Related readings:  China to restart new stock issuance after reform  Stock market shines as most global peers lag  Stock market swings during the two sessions  Stock chips will cripple small-scale farms

Analysts said investors' attention seemed to be turning away from worries about a possible swine flu pandemic and toward reassuring signs about the outlook for market liquidity and that a resumption of IPOs was unlikely in the near term.

"Even overseas markets seem stable and are not overreacting to the swine flu news, so there is no need for Chinese investors to be pessimistic," said Huatai Securities analyst Li Wenhui.

Coal shares were strong, lifted by China Shenhua Energy Co, which gained 3.08 percent to 24.74 yuan after posting a 17.2 percent rise in first-quarter earnings.

China's Industrial Bank climbed 7.95 percent to 23.75 yuan. Analysts said stable earnings in the bank sector encouraged buying.

Auto shares outperformed, with SAIC Motor jumping 7.2 percent to 11.47 yuan. Huatai Securities analyst Li Wenhui said investors were hoping for additional tax incentives for car purchases.

Most drugmakers slid after a surge the previous two sessions spurred by worries over the spread of swine flu, although some shares continued to rise.

Henan Taloph Pharmaceutical lost 3.4 percent to 5.4 yuan after rising its 10 percent limit each of the previous two sessions, while China Animal Husbandry Industry Co, a maker of animal health products, rose 1.06 percent to 23.85 yuan after rising its 10 percent daily limit for a second straight day on Tuesday.

HSI firmer

Hong Kong shares finished 2.8 percent firmer yesterday, clawing back some lost ground after a two-day slump, but turnover languished as worries about a potential widespread swine flu outbreak kept investors at bay.

Turnover dropped to HK$50.7 billion from HK$56.2 billion on Tuesday.

The benchmark Hang Seng Index ended up 401.84 points at 14956.95 with HSBC taking the lead with a 1.7 percent gain.

The China Enterprises Index of top mainland companies was 3.7 percent higher at 8796.08 with ICBC in the lead with a 4.6 percent rally.