China A-shrs close higher on bargain-hunting; financials, property rise

China A-shrs close higher on bargain-hunting; financials, property rise - UPDATE

	Published : Fri, 02 Mar 2007 08:56 By : Agencies Print this Story

SHANGHAI (XFN-ASIA) - A-shares in Shanghai and Shenzhen closed higher on bargain-hunting interest after yesterday's falls with financial and property stocks in demand, dealers said.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed up 34.34 points, or 1.23 pct, at 2,831.53, after moving between 2,777.80 and 2,846.16.

The key index fell 5.57 pct for the week. Turnover fell to 74.93 bln yuan from 106.61 bln in the previous session.

'Some bargain hunters entered the market after recent dramatic corrections, with oversold financial and property stocks favored in particular,' said Xu Ming, an analyst at Shiji Investment.

'But the significantly shrunken turnover indicated that most investors remained sidelined on caution ahead of the weekend parliament session,' Xu added.

Analysts said the market is expected to recover over the next week and the upcoming parliament session will have limited impact on the market performance.

'No major market-moving policies are expected during the parliament session. And if there is no negative news to be issued over the weekend from the central bank such as interest rate hikes, the market is likely to see a recovery next week,' said Chen Huiqin, an analyst at Huatai Securities.

Property developers were in favor on bargain-hunting amid the yuan's recent strength, dealers said.

China Merchants Property Development Co Ltd (SZA 000024; SZB 200024) rose by its 10 pct daily limit to 23.76 yuan.

Poly Real Estate Group Co Ltd (SHA 600048) was up 2.88 yuan or 6.40 pct at 47.90.

Finance Street Holding Co Ltd (SZA 000402) was up 0.95 yuan or 7.12 pct at 14.30.

Financial stocks also saw a rebound, with Hong Yuan Securities Co Ltd (SZA 000562) up 0.70 yuan or 3.68 pct at 19.70.

CITIC Securities Co Ltd (SHA 600030) was up 1.93 yuan or 5.51 pct at 36.95. Bank of China (SHA 601988; HK 3988) was up 0.05 yuan or 1.07 pct at 4.71.

Shaanxi International Trust & Investment Co Ltd (SZA 000563) was up 0.13 yuan or 1.64 pct at 8.08. Anxin Trust & Investment Co Ltd (SHA 600816) was up 0.35 yuan or 3.49 pct at 10.37.

Ping An Insurance (Group) Co (SHA 601318; HK 2318) was down 0.38 yuan or 0.81 pct at 46.41 after recording a nearly 40 pct gain on its A-share trading debut yesterday here.

Steelmakers were under pressure from follow-through selling with Inner Mongolia Baotou Steel Union Co Ltd (SHA 600010) down 0.31 yuan or 5.49 pct at 5.34.

Maanshan Iron & Steel Co Ltd (SHA 600808; HK 0323) was down 0.27 yuan or 4.05 pct at 6.39.

Lingyuan Iron & Steel Co Ltd (SHA 600231) was down 0.23 yuan or 2.96 pct at 7.55.

Electronics firm Shenzhen Huaqiang Industry Co Ltd (SZA 000062) was down 0.63 yuan or 4.32 pct at 13.95, even though it said net profit in 2006 surged 232.2 pct.

The Shanghai A-share Index was up 36.20 points or 1.23 pct to 2,973.96 on turnover of 74.42 bln yuan and the Shenzhen A-share Index was up 11.32 points or 1.51 pct at 760.65 on turnover of 39.57 bln yuan.

The FTSE/Xinhua China A 50 Index was up 166.37 points at 10,194.18. The FTSE/Xinhua China A 200 Index was up 116.35 points to 7,283.47 and the FTSE/Xinhua China A 600 Index was up 97.25 points at 6,301.55.

(1 usd = 7.75 yuan)

lake.xu@xinhuafinance.com

China A-shrs close higher on bargain-hunting; financials, property rise - UPDATE