SHANGHAI: The mainland stock market increased 2.73 percent yesterday, as investors' concerns about Monday's earthquake's impact on individual companies' performances eased after nearly half of the companies in Sichuan and Chongqing reported they were unscathed by the natural disaster.
The benchmark Shanghai Composite Index rose 97.19 points to close at 3657.43, with 717 out of 914 stocks closing higher. The Shenzhen Component Index jumped 3.5 percent, or 458.11 points, to close at 13532.34.
The turnover on two bourses amounted to 185.4 billion yuan, down 0.8 percent from Tuesday. The total capitalization rose 2.7 percent to 23.89 trillion yuan.
A total of 34 listed companies in Sichuan and Chongqing, which resumed trading after reporting the quake's impact on them, performed well in yesterday's trading. Most made announcements to the stock exchanges saying their production and operations were unaffected.
Construction companies Sichuan Road and Bridge Group Co Ltd and Chongqing Road and Bridge Co Ltd surged to the daily allowable limits. "The heavy reconstruction in the earthquake's aftermath is expected to boost construction firms' business," TX Investment Consulting Co Ltd analyst Wu Feng said.
Cement producer Sichuan Golden Summit Co Ltd also soared 10 percent to close at 7.56 yuan, as consumption increases are anticipated.
Panzhihua New Steel & Vanadium Co Ltd, one of the largest steel companies in Southwest China, is also expected to benefit from the reconstruction. Its shares jumped 3.23 percent to close at 10.86 yuan.
Shares of Chongqing Taiji Industry (Group) Co Ltd, the core business of which is traditional Chinese and Western medicine, surged 6.38 percent. "The Chinese government is expected to purchase large orders of medicine from several local medical companies after the quake," Southwest Securities analyst Wang Dali said.
Analysts also expect investors' sentiment to gradually recover over the following months.
CLSA's Henry Ho said Chinese stocks would be re-rated in 2009, and international hot money may begin to flow into the China stock market in the fourth quarter of this year.
China Daily
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