Markets
Manufacturing boosts markets
By Irene Shen and Zhang Shidong (China Daily)
Updated: 2011-04-02 11:06
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Benchmark index sees biggest rally in four weeks on growth figures
SHANGHAI - Stocks on the Chinese mainland rose on Friday, driving the benchmark index's biggest rally in four weeks. The advance came as growth in manufacturing signaled the economy is withstanding increases in interest rates and other tightening measures.
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A branch of China Merchants Bank Co in Shanghai. The lender's shares rose 1.70 percent on Friday.[Photo / Agencies] |
Yanzhou Coal Mining Co surged to a record high, leading increases for energy producers, after factory growth accelerated for the first time in four months.
China Merchants Bank Co and Poly Real Estate Group Co rose as investors speculated that banks and property developers are cheap relative to the outlook for earnings.
"Manufacturing growth shows the economy hasn't yet been hurt by the tightening measures, easing concerns over a possible slowdown," said Tu Jun, a strategist at Shanghai Securities Co. "It's a boost to investors' confidence."
The Shanghai Composite Index jumped 1.34 percent to 2967.41 at the 3 pm close on Friday.
The CSI 300 Index advanced 1.53 percent to 3272.73.
Yanzhou Coal surged 7.16 percent to 36.97 yuan ($5.65), the highest price since its debut in July 1998. China Shenhua Energy Co advanced 1.82 percent to 29.62 yuan.
Investors should buy shares of coal producers and other companies that rely on economic expansion for profits in the second quarter as growth is expected to accelerate, Shenyin & Wanguo Securities analysts wrote in a report.
A gauge of financial stocks in the CSI 300 advanced 2.6 percent, the biggest gain since Feb 14. It climbed 4.8 percent in the first quarter after falling 27 percent last year.
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Poly Real Estate led gains for developers, jumping 5.06 percent to 14.11 yuan, the most since Jan 11. Gemdale Corp rose 2.95 percent to 6.99 yuan.
Shenzhen Fuanna Bedding and Furnishing Co, a manufacturer of household textile products, climbed 4.24 percent to 36.17 yuan, the biggest gain since Feb 10. First-quarter profit may have risen between 50 percent and 70 percent from a year earlier on higher sales and profit margin, the company said in a statement.
Hong Kong stocks rose, pushing the Hang Seng Index 1.17 percent higher to close at 23801.90, its second weekly advance
The Hang Seng China Enterprises Index of mainland companies' H shares increased 1.02 percent to 13451.48.
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