SHANGHAI: The stock market regained its footing yesterday after tumbling for four consecutive trading days.
The benchmark Shanghai Composite Index yesterday surged 106.06 points, or 1.87 percent, to close at 5773.39, with 466 of 1,003 stocks closing higher than the previous day. The indicator dropped as low as 5574 points before it closed slightly up. Turnover on the Shanghai bourse yesterday totaled 58.4 million yuan, up 7.3 percent from the previous day.
The smaller Shenzhen Component Index also climbed yesterday by 231.75 points, or 1.26 percent.
Analysts said they expect the market to fluctuate within a narrow band for some time because of lingering investor fears of possible government measures to dampen excessive speculation.
They said the sharp recovery of large-cap stocks, especially those in the banking and property sectors, had helped push up the index.
Bank of Communications' A shares soared 6.7 percent to 16.08 yuan. Its Hong Kong-listed H shares rocketed more than 14 percent.
Shares in the Industrial and Commercial Bank of China rose 5.5 percent on the Shanghai exchange to close at 7.86 yuan.
Dalong Property yesterday climbed 6.09 percent to close at 11.5 yuan and Zhongjiang Property increased 3.3 percent to 17.59 yuan.
Zhang Xiaojun, an analyst at China Securities, said: "The newly released third-quarter corporate earnings reports of several banks helped build investor confidence in bank stocks."
China Merchants Bank yesterday posted a net profit of 9.9 billion yuan for the three months ended September 30, up 128 percent from a year earlier. The bank's commission income was 1.9 billion yuan, about the same as the previous quarter.
Shenzhen Development Bank said its net profit for the third quarter surged 64.94 percent from the previous year to 749 million yuan.
Wu Gang, an analyst at Orient Securities, said yesterday's stock market recovery was mild because investors are still wary of further price corrections in the near future.
Food and beverage stocks were also a major contributor to yesterday's rally, with Huiquan Beer surging 8.58 percent to 10.5 yuan and Shuijingfang Wine increasing 6.78 percent to 23.93 yuan.
Analysts expect the mainland stock market to maintain a moderate upward trend in the fourth quarter, compared with the rest of the year, as bullish factors like high corporate earnings and plentiful liquidity have largely been discounted.
Source:China Daily
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