CHINA / National |
China stocks hit record high for 4th straight session(Reuters)Updated: 2007-05-10 19:21 SHANGHAI - China's benchmark index hit a record high for the fourth consecutive session Thursday as more retail investors poured into the market hoping to profit from its bull run. The benchmark Shanghai Composite Index rose 0.9 percent to 4,049.70. The Shanghai index is up 51.4 percent since the start of the year on flush liquidity, after more than doubling last year. The Shenzhen Composite Index rose 1.1 percent to 1123.17 on Thursday, also a record close for the fourth straight session. "The market could rise to 4,500 in the near term if regulators don't carry out any aggressive cooling measures," analyst Wang Junqing of Guosen Securities said. "Liquidity is overly abundant amid a stock-account opening spree." Analysts said they expect intraday volatility to increase, as some investors take profits while newcomers remain bullish. Blue chips continued to rise as their valuations are relatively more attractive than those of small-capitalized companies, analysts said. China Petroleum & Chemical gained 5.5 percent to 12.74 yuan after rising 1.3 percent on Wednesday. Baoshan Iron & Steel rose 6 percent to 12.70 yuan following a 4.7 percent gain in the previous session, and China Yangtze Power advanced 2.7 percent to 15.44 yuan after rising 2.9 percent on Wednesday. Turnover slipped to 209.5 billion yuan (US$27.2 billion;euro20.10 billion) from a record 257.2 billion yuan (US$33.4 billion;euro24.68 billion) on Wednesday. According to the Financial Times newspaper, combined turnover on China's two bourses on Wednesday was greater than the whole of the rest of Asia, including Japan. |
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