Stocks rebound to regain 5,000-point mark
Updated: 2007-11-29 16:16
Chinese stocks made a big comeback on Thursday to edge just over 5,000 points again, recovering part of the more than 20 percent losses in less than two months.
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The benchmark Shanghai Composite Index rose 4.16 percent to close at 5,003.33 points, reversing three consecutive days of losses. Before the rebound, the gauge lost 21.57 percent since peaking on October 16.
Other indicators also increased. The Shenzhen Composite Index gained 3.06 percent to 1,257.26, while the CSI 300 Index of major companies in the two bourses went up 4.16 percent to 4,842.07.
Turnover in Shanghai and Shenzhen rose to 116.43 billion yuan, an increase of 50.45 percent over the previous session, indicating a recovery of investor confidence.
The market needed a technical rebound after several days of corrections, analysts said. But they were uncertain whether the recovery will last.
Another factor that might contribute to Thursday's rally might be a surge in the global equity markets after a senior Federal Reserve official from the United States hinted at a further rate cut.
Don Kohn, vice-chairman of the Fed, said the US central bank would be "flexible and pragmatic" in responding to new risks to growth arising from the relapse in financial markets.
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Back in Shanghai and Shenzhen, blue chips led the surge. PetroChina rose 2.77 percent to close at 33.04 yuan per share, while Sinopec jumped 8.77 percent to 21.83 yuan.
In the financial sector, the Industrial and Commercial Bank of China went up 6.37 percent, followed by a 5.27 percent growth in China Construction Bank to 10.38 yuan.
Property shares were also strong, with China Vanke rising 4.34 percent to 31.26 yuan. Financial Street Holding jumped 8.15 percent to 27.47 yuan.
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