Key index gains another 4.45%
Updated: 2008-04-08 07:43
SHANGHAI: Mainland stocks jumped a further 4.45 percent yesterday after last Thursday's rebound, as bargain hunters entered the market.
The benchmark Shanghai Composite Index surged 153.38 points to close at 3599.62, with 859 of 911 stocks closing higher. The Shenzhen Component Index soared 5.88 percent to close at 13396.61.
Turnover on the two bourses was 121.68 billion yuan, up 28 percent from Thursday. Market capitalization dropped 9.3 percent to 24.08 trillion yuan.
"Sharp falls in the past month have triggered a technical rebound recently," said Chen Li, chief analyst at Shenyin Wanguo Securities. The major indicator fell over 20 percent in March.
"Recent reports said institutional investors entering the market lifted investor sentiment and brought bargain hunters to snap up stocks that have dropped sharply in the past month," said Wu Feng, an analyst at TX Investment Consulting Co Ltd.
Nearly all securities companies surged to the daily limit yesterday on good earnings expectations for the first quarter of this year. Shanghai-based Haitong Securities, Sinolink Securities and Southeast Securities all jumped 10 percent.
Quarterly reports for securities firms are due out this month. "The approaching index futures and financing service for securities are likely to raise stockbrokers' earnings growth," Wu said.
Large-caps led the rally. PetroChina jumped 4.56 percent to close at 18.35 yuan, Ping An of China increased 5.35 percent to 62.2 yuan and China Aluminum soared 10 percent to close at 22.86 yuan.
Banking and real estate sector earnings are expected to be sound in the first quarter. "Banks are likely to see 60 percent revenue growth this year," Wu said. Property prices showed no obvious slowdown in the first quarter and real estate companies should see solid revenue, analysts said.
China's largest real estate developer Vanke A jumped 4.84 percent, while Poly Real Estate was up 6.16 percent.
"But economic uncertainties including export data and consumer product prices for March could produce market fluctuation in the coming weeks," Chen said.
"The continuing conversion of non-tradable shares into tradable ones will continue to squeeze market liquidity so the ups and downs will continue for a while yet," said Zhou Liang, head of Lipper China Research.
(China Daily 04/08/2008 page13)
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