SHANGHAI: The major mainland index picked up after Tuesday's sharp fall to surge more than 6 percent yesterday, mainly boosted by heavyweight stocks in the energy and financial sectors.
The benchmark Shanghai Composite Index soared 6.05 percent, or 115.04 points, to finish at 2017.47, with 884 out of 961 stocks closing higher. The smaller Shenzhen Component Index was 6.14 percent higher at 6679.94 points.
The combined turnover on the two bourses amounted to 120.35 billion yuan, down 16.7 percent from Tuesday.
Analysts said the turnaround was within their expectations as the short-term pressure for a correction following big gains last week was eased by yesterday's huge dive. The mainland's major index shed 6.31 percent on Tuesday due to growing concern about the global economy.
"The increasing number of new stock accounts last week showed that market confidence has fundamentally grown thanks to the government's recent bold fiscal move, and the room for further index advancement remains big due to the low valuation of equity shares," said Mao Nan, an analyst at Orient Securities Co Ltd.
China's newly opened stock investment accounts soared 55 percent to 261,846 in the week ended Nov 14 from the previous week.
"The stock market is the barometer of the country's economy, which will undoubtedly be spurred by government's determination to boost domestic demand," Mao noted, estimating that a further interest rate cut was just around the corner.
Lorraine Tan, vice-president of Asia-Pacific equity research for Standard & Poor's, said that although mainland stocks cannot be completely decoupled from overseas markets, the selling pressure here is much greater than in other markets due to the sharp fall in the past 10 months. "The Shanghai index was down 67 percent by October, and probably has to consolidate."
Shares in Chinese oil refiners rallied yesterday amid speculation that China would introduce fuel price reforms, which would help boost refiners' margins. Sinopec surged to its daily limit to 8.37 yuan yesterday, while rival PetroChina jumped 7.49 percent to finish at 11.91 yuan.
All shares in the financial sector gained in yesterday's session.
But Tan noted that there's still bad news to come on the economic front, and the stock market would remain volatile.
"We expect more details of China's stimulus package to come out, and a better performance will probably be seen in the second half of next year."
Source:China Daily
|
Comment
Tell A Friend
Print Format
Save Article