CHINA’S BENCHMARK Shanghai Composite Index broke through the critical 3,000 level in early trade on strong showings from coal, nonferrous and steel before settling back at 2,984.01 to close 0.21% higher on the day.
Financials and property counters also mostly finished in positive territory.
Today’s trading followed recent trends of seemingly minimal downside impact from the ongoing nuclear crisis gripping Japan and the multi-nation strikes on Libya after the Shanghai Composite added 2.44% last week.
In fact, coal mining firms were buoyed by the renewed nervousness about nuclear energy, anticipating possible unforseen delays in ongoing nuclear reactor construction until the situation in Japan is resolved.
Yanzhou Coal Mining (SHA: 600188) led the sector, adding 5.3% to close at 34.94 yuan, also boosted by its announcement over the weekend that its bottom line more than doubled last year to over nine bln yuan.
Meanwhile, coalmining peer China Shenhua Energy (SHA: 601088) finished up 1.4% at 29.59 yuan following strong earnings, while China Coal Energy (SHA: 601898) added 0.8% to 10.99.
A Chinese language piece in Sinafinance said the Index also took in stride the latest reserve requirement ratio hike by the People’s Bank of China, the country’s central bank, which kicked in last Friday.
Steel, coal, nonferrous metals, financials and real estate listcos led the early morning rally today, but the rally in mainboard-listed blue chips was offset by concurrent drops in both the ChiNext Board (aka: Growth Enterprise Market) and the SME Board, which fell 1.89% and 1.34%, respectively.
The Infrastructure Development subindex rose 3.54% today while the Steel subindex added 1.69%.
Inner Mongolia BaoTou Steel Union Co (
Reports that the Ministry of Culture would soon announce measures to promote listed tourism and culture-related stocks sent Shanghai Xinhua Media Co Ltd (SHA: 600825) up 5.96% to 8.71 yuan.
Rare earth metals firm Puyang Refractories Group Co Ltd (SZA: 002225) was up its daily limit of 10% to 17.36 yuan after announcing its latest dividend payout plan, with investors saying its 50% share price spike over the past five trading days was primarily due to an influx of institutional investor funds.
Chemical firm Guizhou Readstar Developing Co Ltd (SHA: 600367) was also up its daily 10% limit to 24.41 yuan while Shanghai 3F New Materials Co Ltd (SHA: 600636) added 6.00% to close at 25.98.
Aluminum futures prospects helped lift Zhuzhou Smelter Group (SHA: 600961) 5.80% to 19.89 yuan.
Major lender China Minsheng Bank (SHA: 600016), which announced strong 2010 bottom line growth of 45%, finished the trading day up 2.61% at 5.51 yuan, while industry peers Citic Bank (SHA: 601998) added 1.5% to 5.56 and Industrial & Commercial Bank of China (SHA: 601398) closed 0.9% higher at 4.50.
Analysts expect investors to take a wait and see position this week as a huge number of major firms are set to release their full-year results.
See recent: CHINA SHARES Edge Up 0.08%, Reserve Requirement Hike Non-Issue
