Domestic stocks were little changed during the morning session today although coal producers rose on speculation prices of the fuel will increase.

 

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, was down 0.26 percent, or 13.65 points, to 5,280.05 at 11:30am.

 

The Shenzhen Composite Index, which covers the smaller mainland market, lost 0.06 percent, or 0.76 points, to 1,326.72.

 

Among the stocks on the Shanghai Composite Index, 261 rose, 505 fell and 80 were unchanged.

 

Shanxi Xishan Coal and Electricity Power Co led the nation's coal producers higher on speculation prices of the fuel will increase.

 

Credit Suisse Group raised its 2008 price forecast for coal used by power companies and steel makers. It said the market "will remain tight'' next year and in 2009. Credit Suisse increased its estimate for Asian contract prices of thermal coal by US$10 a ton to US$80 for next year. It forecast a "long-term'' price of US$60.

 

Shanxi Xishan, China's second-largest coal producer, gained 4.57 percent, or 2.44 yuan (33 US cents), to 55.79 yuan. Yanzhou Coal Mining Co, China's biggest coal mine by market value, added 1.69 percent, or 0.33 yuan, to 19.82 yuan.

 

Copper producers rebounded from weak performances in the last few trading days this morning.

 

Jiangxi Copper Co climbed the most in a week after a group it belongs to won the right to develop Afghanistan's largest copper mine.

 

Jiangxi Copper, China's largest publicly traded producer of the metal, climbed 1.42 percent, or 0.71 yuan, to 50.70 yuan. China Metallurgical Group Co and a group it heads beat four rivals for the right to develop the Afghan copper mine with a US$2.87 billion offer, a company consultant said yesterday.

 

The banking sector was mixed this morning.

 

Shanghai Pudong Development Bank Co bounced back from yesterday's loss and edged up 1.05 percent, or 0.53 yuan, to 50.81 yuan this morning.

 

But Industrial & Commercial Bank of China, the nation's biggest listed lender, was down 1.59 percent, or 0.13 yuan, to 8.03 yuan while China Minsheng Banking Corp, the nation's only non-state bank, also ended down 1.58 percent, or 0.26 yuan, to 16.16 yuan.

 

Zhou Xiaochuan, the governor of the People's Bank of China said on Sunday that the central bank will continue to "withdraw liquidity'' by raising the amount lenders have to set aside in reserves. But he denied that the central bank will raise interest rates next week.

 

Elsewhere, oil refiners remained weak as the price of crude oil continued to rise.

 

PetroChina Co, the nation's largest oil producer, slid 0.51 percent, or 0.19 yuan, to 37.25 yuan. China Petroleum and Chemical Corp, also known as Sinopec, Asia's biggest refiner, declined 0.17 percent, or 0.04 yuan, to 23.08 yuan.

 

Crude oil rose 3.6 percent to US$98.03 a barrel yesterday in New York, the highest close since trading began in 1983.

 

(Shanghai Daily November 21, 2007)