Markets

Key mainland index climbs

(China Daily)
Updated: 2010-03-04 11:25

SHANGHAI - The mainland's key stock index rose 0.78 percent on Wednesday to its highest close in more than five weeks, led by renewable energy shares.

The Shanghai Composite Index ended at 3,097.005 points, recapturing its modest loss in the previous session after a week-long rally fuelled by speculation in small-cap shares stalled at a five-week high. "Trading remained dominated by interest in select stocks, mostly small caps such as renewable energy stocks," said Xu Yinghui, senior analyst at Guotai Junan Securities in Shanghai.

"As you can see clearly, sentiment remains cautious, capping gains in the overall market," Xu said, citing an official clampdown on excessive bank lending and a regulatory push to add share supplies to cool asset prices.

Several analysts said they expected the benchmark index to move narrowly around the 125-day moving average, now at 3,078 points, for the rest of this week. The average is regarded as a barometer of bearish versus bullish sentiment on the market.

Turnover on the Shanghai bourse rose to 136 billion yuan ($20 billion) from Tuesday's 124 billion yuan.

Analysts said investors were wary about possible policy moves to curb price rises in the property sector, with the Shanghai Property Index edging down 0.09 percent at 4,233.531 points.

Hang Seng lower

Hong Kong stocks slipped 0.14 percent lower on Wednesday led by China Mobile, despite a recovery in index heavyweight HSBC.

Related readings:  Chinese shares close higher Wednesday  Chinese shares close higher Monday  Chinese shares slide Friday after rising for two days

China Mobile fell 2.42 percent to HK$74.60, its lowest close in about two weeks. Brokers said investors were more concerned about the competition China Mobile faced in the mainland market.

HSBC rebounded 1.12 percent to end at HK$81.45 after a 7.04 percent decline in the previous session following disappointing earnings for 2009.

The benchmark Hang Seng Index ended down 29.32 points at 20,876.79. The China Enterprises Index of top locally listed mainland stocks closed up 0.26 percent at 12,048.25, its highest close in six weeks. Turnover fell to HK$59.9 billion ($7.7 billion) from Tuesday's HK$72.10 billion.

Reuters

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