 Stock surge in smaller banks lifts market
(China Daily)
Updated: 2009-02-24 07:28
 The mainland stock market rose in heavy trade yesterday as shares in smaller banks surged. Real estate shares also outperformed after official media said the government was considering a package of measures to provide long-term support for the residential housing market. The Shanghai Composite Index spent most of the morning lower but closed the day up 1.96 percent at 2305.777 points. Over 35 Shanghai A shares up their 10 percent daily limits. Turnover in Shanghai A shares, which dropped for three straight days last week as inflows of fresh money into the market slowed, rebounded to a heavy 138.2 billion yuan from Friday's 108.7 billion yuan. Shenzhen Bank jumped its 10 percent limit to 14.99 yuan in response to a media report that China Development Bank might buy all or part of Shenzhen Development Bank. It boosted shares in other small- and medium-sized banks amid talk that some might eventually also be involved in merger discussions, and that a takeover of Shenzhen Bank could lead to a rerating of the entire sector. CITIC Bank rose 3.13 percent to 4.61 yuan while Bank of Nanjing advanced 7.32 percent to 11.87 yuan. Bank of Ningbo rose 5.15 percent to 9.18 yuan after saying on Friday that 2008 net profit rose 40 percent, though growth slowed sharply in the second half of the year. The property subindex gained 4.54 percent, with Vanke up 4.65 percent to 8.1 yuan. Some analysts said the main market index was likely soon to test 2400 points, where it peaked last weak, as the bank sector lured fresh money to stocks. But many analysts remain sceptical that the stock market can continue rising in the medium term. Some funds were seen cutting their exposure to stocks when the main index rose above 2300 points earlier this month. HSI up 3.8% Hong Kong shares closed 3.8 percent higher yesterday as risk-takers grabbed a chance to profit from a report that the US government may end up increasing its stake in Citigroup to as much as 40 percent. But gains were shaved in the final minutes of trade as caution about corporate earnings returned to haunt the market. The benchmark Hang Seng Index finished up 475.93 points at 13175.10. The China Enterprises Index of top mainland firms was up 3.4 percent at 7307.01. Agencies
 (China Daily 02/24/2009 page15) |
