Financial, coal shares lift mainland indexes

Source:Global Times Published: 2017/8/27 17:23:39

Chinese mainland stocks jumped to their highest level in almost 20 months Friday, buoyed by strong performances in financial and resource shares.

The country's economic momentum is expected to remain stable and solid throughout the rest of this year following a flurry of stronger-than-expected earnings posted by major domestic companies in recent days.

The benchmark Shanghai Composite Index gained 1.83 percent, closing at 3,331.52 points Friday, notching its best performance in a year. For the past week, the index rose 1.9 percent.

The smaller Shenzhen Component Index closed up 1.00 percent at 10,659.01 points.

The combined turnover of the two bourses was 466.2 billion yuan ($70 billion), up from 407.7 billion yuan the previous trading day.

The blue-chip CSI300 index, which tracks major companies on the two bourses, rose 1.64 percent Friday with a weekly gain of 1.9 percent.

Investors also remain bullish over China's ongoing State-owned enterprises reforms with related shares performing well.

The Shanghai-listed arm of China Unicom saw its shares increase 0.24 percent to 8.38 yuan Friday. The company's shares surged more than 20 percent before falling Thursday.

Securities analysts say the market could be further supported if the Shanghai index can breach the 3,300 point level. The index has failed to surpass the level over the past nine months.

"A breakthrough could turn market bears into bulls and attract fresh money," Yang Hai, strategist at Kaiyuan Securities, wrote in a Reuters report.

Financials led the gains last Friday, with the Bank of Nanjing closing 5.14 percent higher and New China Life Insurance gaining 5.01 percent. The banking sub-index rose 3.2 percent.

Material sectors also grew sharply. Boosted by rising commodity prices, coal shares performed well, with an index tracking those shares jumping 4 percent.

The NASDAQ-style board ChiNext Index gained 0.95 percent Friday.

Posted in: MARKETS

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