Mainland stocks up; NEVs shed big gains

Source:Reuters-Global Times Published: 2017/9/12 17:38:40

Chinese mainland stocks edged higher on Tuesday, though gains rooted in consumer and financial firms were pared as shares of new-energy auto firms succumbed to profit taking late in the session.

The blue-chip CSI300 index rose 0.32 percent to 3,837.93 points, while the Shanghai Composite Index gained 0.09 percent to 3,379.49 points.

China's new-energy vehicle (NEV) firms reversed hefty earlier gains on Tuesday, with an index tracking NEVs ending down 0.20 percent, after jumping as much as 4.50 percent to a record high.

Real estate firms continued to weigh on the market, while consumer and financial shares led gains, closing up 1 percent and 0.60 percent respectively.

Helping some sectors were expectations of solid profit growth in the third quarter.

Nearly 1,000 Chinese mainland-listed companies have put out preliminary reports forecasting a rise in third-quarter profits, China Securities Journal reported.

Zhou Yu, strategist at Pacific Securities, said he expects upstream sectors including steel, coal, nonferrous metal and petrol could continue to attract buying interest in light of steady gains in profitability.

Resources shares rose sharply on Tuesday, as steel and aluminum futures advanced in Shanghai amid signs of tighter supply.

Baoshan Iron & Steel raised the prices of its main products for October delivery.

Posted in: MARKETS

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