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Equities edge up, led by financials, tech

(China Daily)
Updated: 2010-03-17 09:46

SHANGHAI - Mainland stocks rose the most in a week, led by financial and technology companies, on speculation recent declines were excessive given earnings growth prospects.

China Merchants Bank Co advanced 3.2 percent after CIMB Research upgraded the bank on the prospect it will benefit more than peers from interest-rate increases.

Air China Ltd, the nation's largest international carrier, and China Southern Airlines, the country's biggest carrier by fleet size, climbed at least 3.7 percent. Shenzhen Kaifa Technology Co led gains for computer companies on an improved industry outlook.

The Shanghai Composite Index rose 15.90, or 0.5 percent, to 2,992.84 at the close. The CSI 300 Index added 0.7 percent to 3,203.97.

"From the medium- and long-term perspective, banks are very cheap and their dividend yields are attractive," said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. "However, the expectations about interest-rate increases are limiting any gains in the market."

While Hong Kong's Hang Seng Index slipped 0.3 percent to close at 21,022.93 on Tuesday, led by developers, after the city's government said it would release apartments on to the market to cool property prices.

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