Coal sector drives indices up to new high
Updated: 2007-09-03 16:26
Inspiring performance in the coal sector and the absence of negative news over the weekend drove major stock indexes well above the 5,300-point level on Monday despite the bourse's warnings against excessive speculations.
The benchmark Shanghai Composite Index opened at 5257.78 points, nearly 40 points higher than last weekend's close. It wasn't long before the index conquered another landmark, 5,300 points, around 10 am. After touching a new all-time high of 5,327.54 after the noon break, the index lingered a bit lower absorbing huge encashment pressure after the surge. It wrapped up Monday's trading at 5,321.06 points, 1.96 percent higher than last Friday's close. Market turnover rose to 191 billion yuan (US$25.3 billion).
| Shanghai Composite Index
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| Shenzhen Component Index Source: www.sina.com.cn |
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The Shenzhen Component Index, covering major stocks listed in the smaller Shenzhen market, gained 1.63 percent to close at 18,164.04 points with a turnover of 107 billion yuan. It also claimed a record high in the middle of trading.
Doubtlessly, the coal sector led today's gain admiring sound half-year profit reports and enlarged productivity. As a convincing proof, China's top economic planning agency announced yesterday the nation's coal production jumped 11.7 percent year-on-year to 1.278 billion tons in the first seven months of 2007. Almost all stocks in the sector attained notable gains of over nine percent today, while share prices of Shanxi Coking and Hengyuan Coal Industry and Electricity Power both reached the upper limit of ten percent.
Shares of China Eastern Airlines, the nation's third largest carrier, resumed trading today after announcing a deal to sell a combined 24 percent stake to Singapore Airlines and Temasek Holdings, the Singaporean government's investment arm. Its share price decisively clinched the upper limit of 10 percent for one day.
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