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Stock index hits another record, 05/10

By Li Zengxin (Chinadaily.com.cn)
Updated: 2007-05-10 15:39

After a higher opening at 4,021.42 this morning and a higher closing at 4,044.06 by the noon, the Shanghai Composite Index closed at another record at 4,049.70 this afternoon, up 0.91 percent from the previous record-breaking close yesterday. The index experienced violent fluctuations, especially during the morning session, with 3,991.48 as the lower bound and 4,072 as the upper limit for the day. Trading volume in the two markets was 310.47 billion yuan, slightly lower than yesterday.

For the whole day, 447 A shares in Shanghai saw their prices going up, led by Nansteel, Xinyada and China Eastern Airlines. Price of Nansteel shares reached 14.25 yuan after hitting the upper cap of 10 percent and stayed on that level to the close. Share prices of 305 companies went down, with Xinhua Media at bottom seeing its shares plunging 9.75 percent to 32.02 yuan. Prices of 86 stocks remained unchanged. China Unicom, the Industrial and Commercial Bank of China and China Minsheng Banking were among the stocks with the largest value of transaction volume of the day.

The Shenzhen Component Index, which tracks stocks on the smaller Shenzhen Stock Exchange, closed at 11,574.16, up 0.49 percent from previous closing. The index moved within a range from 11,407.87 to 11,645.21.

Of the A shares, prices of 334 stocks went up, 162 down and 113 ended flat. Top gainers on the exchange included Wuhan Plastic, which ended 10.05 percent up at 12.16 yuan, Tangsteel and Victory whose stocks also hit the 10-percent boundary. Huamao was left on the bottom with a 9 percent plunge in price. Wanke, Xinye and Wuliangye were the stocks with largest transaction volume in value terms.

Looking at sectors, steel makers including Baosteel which closed 6.01 percent higher at 12.70 yuan and Masteel which was up 9.86 percent to 9.47 yuan were on the spotlight. Coal, colored metal and the whole resource sector were traded actively, led by Luanzhou Coal and Zinc Stock.

The tide for "investors in brokerages" concept faded today. Such shares like Dazhong Public, Wanwei High-Tech and Wanneng Power saw the largest price slump.

B shares kept strong growth. The Shanghai B-Share Composite Index went up 3.14 percent to 274.48 point.

On the current high-level violent fluctuations of the stocks, analysts recommend investors to target undervalued blue chips with good profit results. If such stocks were largely left behind in the price surging wave, they are most likely to become market leaders very soon.