 Shares continue rally, coal in demand
(China Daily)
Updated: 2009-01-07 11:54
 Mainland stock market continued rising yesterday as coal shares surged, banks were supported by a solid earnings estimate from Pudong Development Bank, and leading property developer Vanke gained on December sales data. The Shanghai Composite Index, which climbed 3.29 percent on Monday, ended Tuesday up 3 percent at 1937.145 points, just off the day's high of 1938.96. Turnover in Shanghai A shares expanded to an active 68.7 billion yuan from Monday's 46 billion yuan. "The index still faces resistance around 2000 points, so it might consolidate now above 1900. Sentiment has improved," said Zhou Lin, analyst at Huatai Securities. Cao Xuefeng, analyst at Western Securities, said the index might test 2100 points, its peak in December, before Chinese New Year in late January. But Zhou and other analysts said a sustained rally remained unlikely before the release of December economic data, which is due in mid-January and is expected to be poor. Another worry for the market is the possibility of a resumption of initial public offers, which could worsen the supply-demand balance. Regulators have essentially halted IPOs in recent months as a means of supporting the market, but an extended market rally might prompt the ban to be lifted. Coal producers outperformed for a second straight day on recent strength in domestic coal prices and the surge in global oil prices fueled by tensions in the Middle East. Shenhua Energy jumped 7.84 percent to 19.66 yuan after climbing 3.99 percent on Monday. One industry analyst noted a rumor that Shenhua had signed an annual supply contract with Shenzhen Power at a price 8 percent higher than last year's. HSI 0.4% lower Hong Kong shares fell 0.4 percent yesterday, snapping a three-day, 9 percent rally, as investors locked in gains on telecom stocks on talk that the much-awaited 3G licences may be issued as early as today. But sharp gains in local property counters, due to a significant improvement in December 2008 home sales as compared with the previous month, offset some of the losses on the broad market. The Hang Seng Index ended 53.8 points lower at 15509.51 after opening 0.3 percent higher. Mainboard turnover rose to HK$53.9 billion from HK$49.4 billion on Monday. The China Enterprises Index of top locally listed mainland firms fell 0.4 percent to 8644.51. Agencies
 (China Daily 01/07/2009 page15) |
