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Coal shares lead market to 1-month high

(China Daily/Agencies)
Updated: 2009-01-23 09:11

The mainland stock market rose 1 percent yesterday to a one-month closing high, led by coal and non-ferrous metals shares while the pharmaceutical sector got a boost from healthcare reforms.

The Shanghai Composite Index ended at 2004.951 points, shrugging off sluggishness earlier in the session that followed widely expected weak readings in key economic data, including a slump in annual GDP growth to 6.8 percent in the fourth quarter from 9 percent in the third.

Turnover in Shanghai A shares was 66.3 billion yuan, down slightly from 68 billion yuan on Wednesday.

Analysts said that as investors expect the fourth quarter of 2008 and the first quarter this year to be the worst in the current slowdown, there was optimism that the government's stimulus steps to bolster the economy would filter through quickly.

"Both sentiment and technical signs are improving, but given that the 2000 mark is a strong resistance for the market, the index is expected to consolidate around that level for days," said Li Shiming, analyst at Xiangcai Securities.

Coal shares were strong, with Taiyuan Coal Gasification advanced 4.38 percent to 20.24 yuan, underpinned by news that its commercial coal production rose 17.5 percent in 2008 and coal sales grew 11.3 percent.

Non-ferrous metals shares were also active, as media reported that the industry might be among those to receive government support.

Western Mining jumped 6.13 percent to 7.96 yuan while Aluminum Corp of China Ltd (Chalco) climbed 4.87 percent to 7.11 yuan.

Beijing Wandong Medical Equipment, Topchoice Medical Investment and Shinva Medical Instrument soared their 10 percent daily limit.

HK shares up slightly

Hong Kong shares bounced off a two-month low and closed with a slight gain yesterday, driven by a strong recovery in HSBC on bargain-hunting.

The lender's shares gained 3.6 percent, breaking an eight-day fall which had been driven by its weak financial position.

HSBC's gains largely accounted for the benchmark Hang Seng Index's rise of 74.36 points or 0.59 percent to close at 12657.99.

Mainboard turnover dropped to HK$35.4 billion from Wednesday's HK$39.6 billion.

The China Enterprises Index of top locally listed mainland firms climbed 0.44 percent to 6760.77 points.