Home / China / Business

Stocks up led by consumer sector

By Bloomberg | China Daily | Updated: 2016-07-27 07:26

Stocks climbed the most in two weeks on Tuesday, led by consumer companies, amid optimism the economy was stabilizing, as a rally by casino shares led Hong Kong equities to their highest level this year.

The Shanghai Composite Index climbed 1.1 percent at the close, the first time it's moved more than 1 percent in either direction in two weeks. Dairy-product maker Inner Mongolia Yili Industry Group Co jumped the most in nearly two months, while SAIC Motor Corp led gains in consumer-discretionary companies.

Sands China Ltd advanced the most since March in Hong Kong after the company said its mass-market gaming revenue in Macao rose for the first time in two years.

Tuesday's gains by mainland equities follow a spell of relative quiet that sent the Shanghai gauge's 10-day volatility to a two-year low on Monday. China's second-quarter economic growth and monthly retail sales and industrial output exceeded estimates, according to official data released this month. The nation's 10-year sovereign bond yields are currently trading near six-month lows.

"We are seeing funds flow from debt into equities as bond yields remain low and systemic risks have been contained," said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. "Further gains will depend on macro data."

The Shanghai Composite advanced to 3,050.17 at Tuesday's close, while the Hang Seng China Enterprise Index of mainland companies in Hong Kong climbed 0.3 percent. The Hang Seng Index added 0.6 percent to close at its highest level since Dec 24.

Inner Mongolia Yili Industry jumped 4.3 percent, while SAIC Motor surged 6.7 percent. Shandong Gold Mining Co rallied 7.2 percent as bullion prices rose after a two-day decline, and Yanzhou Coal Mining Co paced energy companies higher with a 2.1 percent gain.

Sands China jumped 6 percent, after the company's chairman and billionaire casino mogul Sheldon Adelson said he's optimistic that recreational gamblers and tourists are helping a recovery in Macao.

Galaxy Entertainment Group Ltd added 6.5 percent in Hong Kong, while Wynn Macao Ltd surged 7.3 percent.

"With optimism that the second half will get better for casinos on a year-on-year basis, investors who were underweight casino stocks in the past few months are getting back in," said Michael Ting, a Hong Kong-based analyst at CIMB Group Holdings Ltd.

"Sands China management said in a conference call that mass gaming returned to growth in June and, overall, the market may have had a bottom."

Sino Land Co rallied 2.7 percent as developers advanced, propelling the Hang Seng Property Index to its highest close since August 2015.

Editor's picks
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349