Markets notch win, brewers bounce back

By Yu Xi Source:Global Times Published: 2012-12-4 22:20:04

Stock markets in Shanghai and Shenzhen ended north of even Tuesday thanks to strong performances from the heavily weighted brewing, aviation manufacturing, securities and oil sectors.

The Shanghai Composite Index increased 15.38 points, or 0.78 percent, to close at 1,975.14; while the Shenzhen Component Index tacked on 1.18 percent, or 90.87 points, to end at 7,801.75.

Both markets opened lower Tuesday and took losses for most of the morning session, with the Shanghai Composite Index touching down at an intra-day low of 1,949.46 points. Afternoon rallies in steel, securities, auto and military related stocks helped the indices pull out of their opening rut to secure victories for the day.

Scandal-plagued Jiugui Liquor Co was able to advance Tuesday for the first time since November 19, when local media reported that hazardous levels of plasticizing agents had been detected in several of its products. The company shot to the 10-percent daily limit to close at 30.05 yuan ($4.82) after it announced that it had restarted production. This news helped buoy other alcoholic drink makers. Hebei Hengshui Laobaigan Liquor Co added 5.80 percent to 29.38 yuan.

Chinese brokerages also outperformed. Sinolink Securities Co jumped 6.61 percent.

Automakers recorded solid gains as well. Shenyang Jinbei Automotive Co Ltd surged to the daily limit to 3.18 yuan.

With little on the immediate horizon in terms of government policy support to inspire investor confidence, the markets may find limited room to climb higher in the days ahead, said analysts.



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