Market digests rate hike, feeling pressure near critical frontier
Updated: 2007-08-22 16:55
In response to the fourth interest hike this year by the central bank last night, Chinese stocks opened nearly 80 points lower than yesterday but soon rallied to near the 5,000-point mark. Although both the major indices broke records on their closes today, the benchmark Shanghai index failed to reach that critical psychological frontier.
Total turnover of stocks in the major indices expanded to 258 billion yuan, the largest in two weeks.
Shanghai Composite Index
Source: www.sina.com.cn
The Shanghai Composite Index opened 78.86 points lower at 4,876.35, and hit the lowest 4,861.27 after the opening. But soon it returned to higher levels. As it moved toward the 5,000-point mark, the downward pressures increased. At its highest of 4,999.20, the index was immediately dragged down by selling bids on individual stocks. Finally, it closed at 4,980.08, 24.87 points or 0.5 percent higher than the previous close.
Shenzhen Component Index
Source: www.sina.com.cn
The Shenzhen Component Index, tracking the smaller Shenzhen Stock Exchange, opened lower at 16,704.93 and stayed within a range of between 16,667.94 and 17,446.10. The index closed at 17,331.99, up 472.02 points or 2.8 percent.
Of the A shares listed in Shanghai, 524 went up, 243 closed down and 75 finished unchanged. Of the gainers, 22 were sealed at the maximum growth cap of 10 percent.
In Shenzhen, 355 A shares closed higher, including the 12 best performing stocks with 10 percent growth, while 198 slipped down and 83 ended flat.
Chalco, TCL and Wuliangye Yibin, three of the largest traders, climbed over 5 percent. The Industrial and Commercial Bank of China, with the largest trading volume in Shanghai, however, dropped 1.7 percent to slow the index.
A shares in the food, services and paper industries led the surging waves. B shares finished mixed, with 49 of the total 109 B shares edging up.
As the stocks broke through previous highs this week, the total market value of China's stock market also made new records, surpassing the 22 trillion yuan mark yesterday when the Shanghai index closed near the 5,000-point line. All securities listed in the two stock exchanges were worth 22.02 trillion yuan, 1.08 trillion yuan higher than China's gross domestic product last year.
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