Markets prolong win as most sectors climb higher

By Yu Xi in Shanghai Source:Global Times Published: 2012-12-10 22:15:04

The strong gains posted by stock markets on the Chinese mainland Friday spilled over into trading Monday.

The Shanghai Composite Index added 21.98 points, or 1.07 percent, to close at 2,083.77; while the Shenzhen Component Index tacked on 0.93 percent, or 76.11 points, to finish at 8,265.79.

Both markets opened higher Monday and advanced throughout most of the trading day as many heavily weighted sectors performed well. Securities, banking, insurance, engineering machinery, aviation manufacturing, agriculture and cement stocks witnessed some of the biggest wins.

Agriculture stocks extended their lead after the sector jumped Friday on news that the central government was mulling plans to reform the agriculture industry next year. Both Henan Huaying Agricultural Development Co and Hunan Dakang Pasture Farming Co advanced to the 10-percent daily limit to close at 5.42 yuan ($0.87) and 7.00 yuan respectively.

In the markets' topical sectors, 3D printers broadly outperformed. Daheng New Epoch Technology and Epoxy Base Electronic Material Corp Ltd both shot to the daily limit to finish at 6.00 yuan and 6.20 yuan respectively.

Listed property developers climbed higher in late trading after an early tumble in the morning session. Poly Real Estate Co added 1.97 percent to 12.40 yuan. China Vanke went up 1.52 percent to 9.34 yuan.

Market confidence was bolstered somewhat Monday after the Xinhua News Agency cited Guo Shuqing, the chairman of the China Securities Regulatory Commission (CSRC), as saying that the Chinese capital market was developing well. According to analysts, these optimistic remarks, combined with the encouraging signs of recovery seen recently from the broader domestic economy, added credibility to claims that the weak equity market could soon be bottoming out.

Posted in: Markets

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