Markets

Industrials lead gains on bourses Wednesday

By Irene Shen and Zhang Shidong (China Daily)
Updated: 2011-02-17 10:19
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Industrials lead gains on bourses Wednesday

An investor at a brokerage in Fuyang, Anhui province. The Shanghai Composite Index rose for a fifth day, adding 0.85 percent to 2923.90 on Wednesday. [Photo / China Daily]

SHANGHAI - Stocks on the Chinese mainland rose to a two-month high after steelmakers boosted prices and analysts recommended industrial companies on speculation their earnings will be more sheltered from the government's policy-tightening measures.

Changsha Zoomlion Heavy Industry Science & Technology Development Co surged the most in almost three months after Credit Suisse Group AG said the machinery maker will benefit as investment drives economic growth. Wuhan Iron & Steel Co led gains for steelmakers as Apple Daily reported the company joined a rival in increasing prices. China Vanke Co paced a drop for developers after the banking regulator said banks should prevent loans from flowing into property speculation.

"Industrial companies are expected to benefit from investments being diverted from the property sector," said Tu Jun, a strategist at Shanghai Securities Co. "These companies are also more immune to inflationary pressure."

The Shanghai Composite Index rose for a fifth day, adding 0.85 percent to 2923.90 at the 3 pm close on Wednesday. The CSI 300 Index climbed 0.96 percent to 3248.53.

A gauge of industrial companies in the CSI 300 Index jumped 1.7 percent to the highest in three months.

Wuhan Steel rose 1.55 percent on Wednesday. The company raised prices for March delivery by as much as 400 yuan ($60.69) a ton, Apple Daily reported on Wednesday, without saying where it got the information. The company will increase prices of its plate-made steel products by between 200 to 400 yuan, the newspaper said.

Baoshan Iron & Steel Co jumped 2.79 percent to 7.38 yuan. The company raised product prices for a third month as demand gained, it said on Tuesday.

Pangang Group Steel Vanadium & Titanium Co climbed 4.98 percent to 12.86 yuan, the highest since March 2008. The steelmaker said Australia's Foreign Investment Review Board has approved an asset-swap plan with the company's parent, Angang New Co.

Beiqi Foton Motor Co led an advance for automakers, surging 4.32 percent to 23.66 yuan. FAW Car Co advanced 1.58 percent to 18.61 yuan.

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China Vanke, the nation's largest developer, dropped 0.58 percent to 8.53 yuan. Poly Real Estate Group Co slid 1.19 percent to 13.31 yuan.

Investors should stay cautious on Chinese stocks in the near-term as inflation has yet to reach a peak and policy tightening will likely remain "aggressive," Jun Ma, economist at Deutsche Bank AG, said in a report to clients on Tuesday.

Tongling Nonferrous Metals Group Co advanced 4.1 percent to 31.24 yuan, the highest since Jan 11. Tongling said it secured a 55 percent increase in treatment and refining charges for processing copper concentrate in the first half from BHP Billiton Ltd.

Bloomberg News

 

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