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BIZCHINA> Top Biz News
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Energy shares prop up mainland bourse
(China Daily/Agencies)
Updated: 2009-11-20 08:08
Chinese stocks rose for a fifth day as energy producers gained on increased winter demand for fuel. PetroChina Co added 1.1 percent to 14.16 yuan as the oil producer said it was supplying record volumes of natural gas. Changchun Gas Co, which supplies gas in the northeast of the country, jumped to the 10-percent daily limit for a second day to 9.63 yuan. Huaneng Power International Inc, the listed unit of China's largest power group, climbed 1.8 percent to 8.53 yuan. The Shanghai Composite Index rose 17.38, or 0.5 percent, to close at 3,320.61, the highest since Aug 6. The measure has surged 19 percent this quarter, the world's third-best performer. The Shenzhen Composite Index rose 1.2 percent, capping a record 15-day rally. "Energy stocks are still the best bet for thematic investment now as China is entering the peak of winter," said Wang Zheng, a fund manager at Jingxi Investment Management Co in Shanghai. "The strong performance of the Shenzhen index is a reflection of the market preference for small-cap stocks." Recent gains on the Shanghai Composite have pushed the measure's 14-day relative-strength index, which measures how rapidly a commodity or security has advanced or retreated, to 74.70. That's more than the 70 level viewed by some investors as a signal for a retreat. "The market has rallied a lot this quarter and investors may take the opportunity to take some profits," said Wang Weijun, Shanghai-based strategist at Zheshang Securities Co. "I don't expect any correction to be deep." The Shanghai index is just 4.3 percent short of this year's peak on Aug 4, as pledges by the government not to withdraw stimulus measures helped the gauge to claw back most of a 22 percent plunge in August. The index is up 82 percent in 2009. Hang Seng down Hong Kong stocks fell for a third day on concern China Minsheng Banking Corp's share sale will lure investors away from equities made more expensive by a rally since March.
The gauge has risen 100 percent from this year's low on March 9, bringing the average price of its constituents to 2.2 times their book value. That's twice the level stocks were valued at during this year's low. The Hang Seng China Enterprises Index fell 1.6 percent to 13,470.98.
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