Chinese stocks rose to a five-year high on Friday, as a rise in shares in the country's biggest bank, ICBC, boosted buying of other banking heavyweights.
November 3, 2006 (Press Release) --
Chinese stocks rose to a five-year high on Friday, as a rise in shares in the country's biggest bank, ICBC, boosted buying of other banking heavyweights.
In currency trading, the yuan hit a fresh high against the U.S. dollar, trading at 7.8708 on the over-the-counter market at 0645 GMT, traders said.
The benchmark Shanghai Composite Index gained 0.8 percent to 1,866.36, its highest close since Sept. 5, 2001. The Shenzhen Composite Index rose 0.5 percent to 451.22.
China's biggest lender, Industrial & Commercial Bank of China, saw its Shanghai-traded "A shares" surge 2.4 percent to 3.36 yuan. Shares in ICBC had been hovering near 3.30 since its simultaneous market debuts in Shanghai and Hong Kong a week earlier.
"I had expected banks would continue consolidating, but a rise in ICBC's A shares boosted buying interest in others," said She Minhua, a banking analyst at China Securities Research.
Shanghai Pudong Development Bank gained 1.9 percent to 13.58. Hua Xia Bank jumped 6.6 percent to 5.15.
Gains in banks and property developers will likely drive China's benchmark stock index to the psychologically important 1,900 level next week, analysts said.
Liu Yisong, an analyst at Galaxy Securities attributed the strength in mainland Chinese banks to Hong Kong-listed banks' solid performance in recent sessions.
Property developers benefited from expectations of further rises in the value of China's currency, which would boost the value of their assets.
Among other big gainers, property developer China Vanke increased 2.0 percent to 8.24 and COFCO Property rose 3.0 percent to 7.84.
Source: http://biz.yahoo.com/
In currency trading, the yuan hit a fresh high against the U.S. dollar, trading at 7.8708 on the over-the-counter market at 0645 GMT, traders said.
The benchmark Shanghai Composite Index gained 0.8 percent to 1,866.36, its highest close since Sept. 5, 2001. The Shenzhen Composite Index rose 0.5 percent to 451.22.
China's biggest lender, Industrial & Commercial Bank of China, saw its Shanghai-traded "A shares" surge 2.4 percent to 3.36 yuan. Shares in ICBC had been hovering near 3.30 since its simultaneous market debuts in Shanghai and Hong Kong a week earlier.
"I had expected banks would continue consolidating, but a rise in ICBC's A shares boosted buying interest in others," said She Minhua, a banking analyst at China Securities Research.
Shanghai Pudong Development Bank gained 1.9 percent to 13.58. Hua Xia Bank jumped 6.6 percent to 5.15.
Gains in banks and property developers will likely drive China's benchmark stock index to the psychologically important 1,900 level next week, analysts said.
Liu Yisong, an analyst at Galaxy Securities attributed the strength in mainland Chinese banks to Hong Kong-listed banks' solid performance in recent sessions.
Property developers benefited from expectations of further rises in the value of China's currency, which would boost the value of their assets.
Among other big gainers, property developer China Vanke increased 2.0 percent to 8.24 and COFCO Property rose 3.0 percent to 7.84.
Source: http://biz.yahoo.com/
Email
Print
SPAM
LEAVE A COMMENT
