China A-shares close higher; banks lift key index to new high - UPDATE |
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Mon, 16 Apr 2007 08:57
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SHANGHAI (XFN-ASIA) - A-shares in Shanghai and Shenzhen closed higher on strong fund inflows, due partly to a rising yuan with banks and power generators favored, dealers said.Nearly 60 companies closed up their daily limits of 10 pct.The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed up 78.17 points, or 2.22 pct, at 3,596.44, a fresh all-time closing high, after moving between 3,523.22 and 3,597.22.Turnover fell to 145.54 bln yuan from 166.49 bln in the previous session.'The market was boosted by solid corporate results announced by major blue chips and the strong yuan,' said Xu Ming, an analyst at Shiji Investment.The yuan finished Friday at 7.7217 to the dollar on the over-the-counter (OTC) market, compared with the previous close of 7.7260. The central bank today set the yuan central parity rate at a record of 7.7220 to the dollar.Analysts said the bullish run is likely to be maintained in the near future.'In the short run, as fresh capital continues flowing in and more blue chips announce their first-quarter results, the bullish trend will likely be sustained,' said Zeng Bo, an analyst at Changjiang Securities.Banking issues were buoyed by expectations for robust profits, dealers said.China Merchants Bank Co Ltd (SHA 600036) was up 1.40 yuan or 7.44 pct at 20.21, ahead of the company's 2006 results, due out later today. The bank is expected to post net profit of 6.06 bln yuan last year, against 3.75 bln yuan the year earlier, according to the consensus estimate of 13 brokerages cited by Thomson Financial.Shanghai Pudong Development Bank Co Ltd (SHA 600000) was up 0.86 yuan or 2.88 pct at 30.70. Industrial Bank Co Ltd (SHA 601166) was up 1.04 yuan or 3.25 pct at 33.06.Power stocks remained in demand on hopes for solid earnings growth this year, dealers said.Guiguan Electric Power Co Ltd (SHA 600236) was up 0.78 yuan or 6.75 pct at 12.33. Guangxi Guidong Electric Power Co Ltd (SHA 600310) was up 1.20 yuan or 6.70 pct at 19.12.SP Power Development Co Ltd (SHA 600795) was up 0.63 yuan or 4.72 pct at 13.97 after announcing the issue of up to 400 mln shares, with proceeds of up to 3.05 bln yuan, that will be used to buy assets from parent China Guodian Corp.China Yangtze Power Co Ltd (SHA 600900) was up 0.26 yuan or 1.92 pct at 13.83 after signing a deal to sell an additional 400 mln H-shares of China Construction Bank (CCB) to Hong Kong-based Reca Investment Ltd for 1.6 bln yuan.Wuhan Iron and Steel Co Ltd (SHA 600005) was up 0.51 yuan or 5.06 pct at 10.59. It said net profit in the first quarter is expected to have risen over 450 pct year-on-year due to higher selling prices.China Vanke Co Ltd (SZA 000002; SZB 200002) was up 0.24 yuan or 1.29 pct at 18.88 after announcing the sale of 626,000 square meters of property in the first quarter, valued at 4.61 bln yuan.China Petroleum & Chemical Corp (Sinopec) (SHA 600028; HK 0386; NYSE SNP) was up 0.04 yuan or 0.34 pct at 11.78. It said net profit in the first three months under Chinese accounting standards reached 20.257 bln yuan, up 120.3 pct from a year earlier, due to increased production.The company reiterated that net profit in the first half is expected to rise by over 50 pct due to projected higher production.The Shanghai A-share Index was up 82.15 points or 2.22 pct at 3,780.61 on turnover of 144.72 bln yuan and the Shenzhen A-share Index was up 27.04 points or 2.72 pct at 1,019.98, also a new record, on turnover of 76.73 bln yuan.The FTSE/Xinhua China A 50 Index was up 328.95 points at 12,794.12. The FTSE/Xinhua China A 200 Index was up 237.98 points to 9,295.80 and the FTSE/Xinhua China A 600 Index was up 218.93 points at 8,241.72.(1 usd = 7.73 yuan)lake.xu@xinhuafinance.com
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China A-shares close higher; banks lift key index to new high 