Holiday hopes raise prices on key index
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Shanghai's key stock index edged up yesterday amid investor expectations that the government will take any steps necessary to maintain a stable stock market ahead of the National Day holiday next week.
The Shanghai Composite Index was up 0.38 percent, or 10.83 points, to 2,853.55. Turnover was 110.9 billion yuan (US$16.2 billion). Losers outnumbered gainers 546 to 299, with 65 unchanged.
Shanghai Pudong Development Bank rose 4.53 percent to 20.06 yuan. The Bank of Communications rose 2.41 percent to 8.51 yuan, and the Industrial Bank was up 5.45 percent to 34.05 yuan.
"The price-earnings ratio of banking shares is around 15 now, which is rather low, and investors are regarding this as a good buying opportunity," said Zhang Gang at Central China Securities.
New stock offers, both on the new Growth Enterprise Market and on the main boards, buoyed the shares of brokerages on the expectation of higher profits. Pacific Securities increased 2.3 percent to 15.15 yuan. Sinolink Securities advanced 3.01 percent to 20.19 yuan.
"We remain cautiously optimistic about China's stock market because the economy is in the process of recovery," Sinolink Securities said in a research report.
Shipping companies were among the losers.
China Shipping Development Co lost 1.24 percent to 11.95 yuan. Shanghai International Port (Group) Co dropped 3.14 percent to 5.24 yuan, and COSCO Shipping Co Ltd was down 1.85 percent at 9.56 yuan.
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