Shares steady, steelmakers in demand

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(China Daily)
Updated: 2009-01-21 08:01

The mainland stock market ended up 0.37 percent on Tuesday, hitting a four-week closing high for a second day in a row after a surge in brokerage shares helped to pull the benchmark index into positive territory late in the session.

Steel shares also outperformed after Baoshan Iron and Steel hiked prices for March, although property shares were soft and other blue chips were mixed.

The Shanghai Composite Index ended at 1994.107 points, while turnover in Shanghai A shares shrank to 55.5 billion yuan from 81 billion yuan on Monday.

Haitong Securities soared 9.06 percent to 11.56 yuan while Changjiang Securities jumped 5.38 percent to 10.96 yuan.

It is reported that unaudited results from 107 Chinese securities houses showed their combined net profit for last year fell to 48.2 billion yuan from 137.65 billion yuan the year before.

"Brokerage earnings in 2008 were not too bad. The index will hold between 2000 and 2100 points before the holiday," said Zhang Yanbing, analyst at Zheshang Securities.

But some analysts said investors were also wary as they awaited Chinese economic data for December and the full year, expected to be announced tomorrow, which may trigger profit-taking if the numbers are worse than expected.

Baosteel, the listed unit of China's largest steelmaker, advanced 1.71 percent to 5.35 yuan after raising prices for key steel products for March.

China Vanke, the country's largest listed property firm, sank 1.42 percent to 6.92 yuan.

Industrial and Commercial Bank of China was flat at 3.68 yuan, while Bank of Communications rose 2.77 percent to 5.56 yuan.

HSBC pull down index

Hong Kong shares fell 2.9 percent on Tuesday as global lender HSBC tumbled for the seventh straight day on fears it will be forced to raise a huge amount of fresh capital as credit losses mount and earnings weaken.

HSBC fell nearly 9 percent at one point after Royal Bank of Scotland on Monday unveiled the biggest loss in British corporate history, fueling fears HSBC will have to issue new shares, slash its dividend or sell its prized stakes in Chinese firms to shore up its capital base.

HSBC ended down 7.7 percent at HK$57.5, dragging the Hang Seng index 380 points lower to 12959.77, and dominating the day's mainboard turnover of HK$39.6 billion.

The China Enterprises Index of top locally listed mainland firms finished 3.3 percent lower at 7005.88.

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