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China B-shares end morning up; power cos buoyed by govt support hopes - UPDATE
BEIJING, Jan 09, 2009 (XFN-ASIA via COMTEX) --
China B-shares finished the morning slightly higher as
electricity producers gained on hopes that the government will inject capital to
support the sector.
Shanghai-based property developers retreated after gaining yesterday following
a report that a Disney theme park will be operational in the city by 2013.
The Shanghai B-share Index was up 0.13 point or 0.11 pct at 117.13 and the
Shenzhen B-share Index rose 1.19 points or 0.42 pct to 282.15.
"There was rotational interest in stocks that would benefit from government
aid, but the gains were short-lived with sentiment still weak," said a
Shanghai-based analyst who asked not be identified.
"The market will be relatively stable ahead of the Chinese new year with
sustained government support," he added.
In Shanghai, Huadian Energy (SHB 900937; SHA 600726) rose 2.24 pct to 0.228
usd, while Zhejiang Southeast Electric Power (SHB 900949; ADR ZHJGYP) advanced
0.73 pct to 0.412.
The 21st Century Business Herald reported that the power sector will be the
beneficiary of a capital injection by the State-owned Assets Administration and
Supervision Commission (SASAC), following similar support provided to airlines
last month.
Shanghai Lianhua Fibre (SHB 900913; SHA 600617) jumped 5.56 pct to 0.285 usd.
Airlines were also in favor on expectations that a tax exemption would ease
their financial burdens, with Hainan Airlines (SHB 900945; SHA 600221) adding
1.61 pct to 0.315 usd.
The Ministry of Finance said it will suspend the collection of tax on airlines'
fuel surcharges, effective Jan 1, with the measure expiring at the end of 2010.
Property firm Shanghai Lujiazui Finance & Trade Zone Development (SHB 900932;
SHA 600663) fell 1.14 pct to 0.952 usd after gaining 2.56 pct yesterday.
In Shenzhen, Shenzhen Nanshan Power Station (SZB 200037; SZA 000037) added 2.88
pct to 2.14 hkd, while Guangdong Electric Power Development (SZB 200539; SZA
000539) rose 1.15 pct to 2.65.
Jiangling Motors (SZB 200550; SZA 000550) lost 1.20 pct to 4.20 hkd. It
reported a drop in vehicle production to 94,340 units from 95,285 a year
earlier, while sales rose to 95,171 units from 95,059 in 2007.
Telecom stocks were mixed after a two-day consolidation. Shanghai Potevio (SHB
900930; SHA 600680) gained 1.10 pct to 0.368 usd and Nanjing Postel
Telecommunications (SZB 200468) lost 1.10 pct to 1.80 hkd.
The FTSE/Xinhua China B 35 Index gained 6.69 points to 4,138.82.
The benchmark Shanghai Composite Index, which covers both A- and B-shares
listed on the Shanghai Stock Exchange, ended the morning up 5.34 points or 0.28
pct at 1,883.52.
(1 usd = 6.8 yuan; 7.8 hkd)
allen.shu@xfn.com
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