Shanghai index rises to new record
Updated: 2007-09-20 16:57
A day after the US Federal Reserve cut the interests rate by 50 basis points, Chinese stocks began a march to higher price levels. The Shanghai Composite Index finished up 74.8 points or 1.39 percent to 5,470.07, a new record high close.
Turnover of the stocks in the major indices was 216 billion yuan, the lowest this week.
The securities regulator and industrial experts warned that investors should not be "blindly" over-optimistic about possible effects of the US interest cut on the domestic market, as such effects, including the pressure of yuan's appreciation against US dollar, rising prices of oil, gold and scarce natural resources on China's stock market, could be moderate.
The domestic market is facing higher risks on the current levels and the series of upcoming initial public offerings (IPO) by State heavyweights are set to exert substantial downward pressure on the market, said analysts.
Shanghai Composite Index
Source: sina.com.cn
Opening higher at 5,408.48, the benchmark Shanghai index took off in the afternoon session after fluctuating modestly for the morning and toughing a low at 5,396.11 by the noon break. It kept on rising to a high of 5,482.43 before turning down a little to the close.
Of the A shares listed in Shanghai, 507 closed up, 263 dropped and 72 remained unchanged. Shanghai Shenda grew 10.05 percent on the top, leading another 27 stocks rising on the maximum growth cap of 10 percent.
The Industrial and Commercial Bank of China, with the largest trading volume, added up 0.1 yuan or 1.54 percent to lift the index up. After gaining 81 percent on a strong debut yesterday, Bank of Beijing, with the largest transaction value, today gained another 8.33 percent to 24.57 yuan.
Shenzhen Component Index
Source: sina.com.cn
The Shenzhen Component Index, tracking the smaller Shenzhen Stock Exchange, opened higher at 18,139.95 and closed 148.4 points or 0.82 percent to 18,221.75. It went through the day within a range of between 18,073.24 and 18,360.24.
Of the A shares, 379 went up, 192 fell and 74 ended flat. China International Marine Containers Group, today's largest trader in terms of transaction value, rocketed 9.27 percent to 34.08 yuan. TCL, also traded actively, closed with a slight drop. Stocks in the media, timber and mining industries were the best performers today, followed by those in construction and finance sectors.
The United States' Federal Reserve decided on August 18 to lower its target for the federal funds rate 50 basis points to 4.75 percent. Analysts believe such a move will boost the global stock, oil and gold markets and increase pressure for the yuan to appreciate against the US dollar.
The US, Australian and almost all the Asian stock markets have been rocketing to new highs on the news. Yesterday Hong Kong's Hang Seng Index went up 977.79 points or 3.98 percent.
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