 Most stocks rise, financials depress index
(China Daily)
Updated: 2009-01-13 07:43
 Most mainland stocks rose yesterday, boosted by strength in metal producers and hopes for more government measures to aid the industrial sector, although weak financial shares depressed the main index. The Shanghai Composite Index ended down 0.24 percent at 1900.347 points after fluctuating around Friday's close. It gained 4.62 percent last week, its biggest weekly rise in a month. Jiangxi Copper advanced 6.62 percent to 12.61 yuan after climbing 4.65 percent on Friday, as copper prices on the London Metal Exchange continued to rise. Many industrials and second-tier stocks were strong. SAIC Motor gained 1.37 percent to 5.92 yuan; an official source said that the cabinet would discuss concrete steps this week to support the auto and steel industries. The steps are expected to include tax cuts and incentives to promote industrial consolidation. But financials were soft, partly because of continued worries about the possibility of more large sales of banks' H shares in Hong Kong, after Bank of America and Hong Kong tycoon Li Ka-shing last week cut their stakes in two top Chinese banks. Industrial & Commercial Bank of China lost 0.56 percent to 3.56 yuan, while China Life Insurance dropped 2.48 percent to 18.88 yuan. HSI 2.8% lower Hong Kong shares fell 2.8 percent yesterday, sagging to a five-week closing low, as grim US unemployment data added to worries that global demand for Chinese exports was nowhere near to recovering. The Hong Kong market has retreated for five straight sessions, matching a similar selloff in October, when the benchmark Hang Seng index reached its 2008 low. "Investors had started to believe that corporate earnings downgrades may have been discounted by last year's steep fall in share prices," said Howard Gorges, vice-chairman with South China Brokerage. "But now the feeling is that the fall may be deeper while the recovery will take longer." The Hang Seng Index ended down 406.44 points at 13971 after opening 0.5 percent lower. Mainboard turnover edged up to HK$46.3 billion from HK$45.2 billion on Friday but investors remained cautious ahead of US retail sales data later in the week. Shares in China Eastern Airlines slid 7.1 percent to HK$1.04 after the airline said it would report a large loss for 2008. The China Enterprises Index of top locally listed mainland firms fell 5.3 percent to 7311.23. Agencies
 (China Daily 01/13/2009 page15) |
