Markets

China's stocks rally for third day to two-month high

(Xinhua)
Updated: 2011-02-14 17:38

An investor smiles at stock exchange hall in Hangzhou, Zhejiang province on Feb 14. Both Shanghai and Shenzhen indexes experience a sharp increase on this week's first trading day. [Photo / Xinhua]

BEIJING - China's stocks rallied for a third consecutive trading day on Monday, sending the benchmark Shanghai Composite Index to its highest point in almost two months.

The Shanghai Composite Index added 2.54 percent, or 71.81 points, to 2,899.13 points.

The Shenzhen Component Index rose 3.62 percent, or 455.31 points, to 12,737.80 points.

Most stocks rose with gainers outnumbering losers by 823 to 71 in Shanghai and 1,091 to 86 in Shenzhen.

Combined turnover expanded to 309.3 billion yuan ($46.9 billion) from 225.09 billion yuan the previous trading day.

The strong gains were boosted by market talk that January's consumer price index (CPI) would be at 4.9 percent, lower than the previously expected figure of 5.2 percent to 5.4 percent. That caused speculation that the government would slow its tightening measures.

The CPI data, as well as other economic data, is due to be released Tuesday.

Financial shares led the rally. China Everbright Bank rose 4.38 percent to 4.05 yuan and Industrial Bank Co, Ltd gained 3.50 percent to 27.18 yuan.

Strong foreign trade data released Monday helped contribute to a sound economic growth outlook. The General Administration of Customs announced exports rose by 37.7 percent year-on-year in January, while imports increased by 51 percent.

Cement, coal and non-ferrous metals also performed well, supporting market gains. Cement companies continued to rise as the government's planned 4-trillion-yuan investment in water projects in the next 10 years will increase demand for cement.

Henan Tongli Cement Co rose by the daily limit of 10 percent to 14.07 yuan. Tangshan Jidong Cement Co climbed 5.39 percent to 24.82 yuan.