Chinese shares rise for first time in five days

November 26th, 2008 - 4:08 pm ICT by IANS  

Beijing, Nov 26 (Xinhua) China’s equity market edged up 0.49 percent Wednesday, rising for the first time in five days, boosted by steel producer stocks. The benchmark Shanghai Composite Index, which covers both A and B shares, edged up 9.17 points, or 0.49 percent, to 1,897.88 points.

The key index has risen more than 8 percent since Nov 9, when the government announced the four-trillion-yuan ($585.7 billion) stimulus package.

The Shenzhen Component Index was up 0.69 percent to 6,533.87 points.

Gainers outnumbered losers by 504 to 313 in Shanghai and by 455 to 241 in Shenzhen. Combined turnover was 60.88 billion yuan.

Shares of steel makers gained, buoyed by news that BHP Billiton, the world’s largest mining company, would abandon its bid for rival Rio Tinto.

The China Iron and Steel Association had opposed the merger of the two iron ore giants over concerns about price controls. BHP Billiton and Rio Tinto together control 40 percent of China’s iron ore imports.

Baosteel, the country’s biggest steel maker, gained 3.93 percent to 5.02 yuan. The Angang Steel Co., a leading domestic steel maker, added 5.97 percent to 7.1 yuan. Shares of the Xinjiang Bayi Iron and Steel Co. jumped by the daily 10-percent limit to 5.72 yuan.

Transport construction-related stocks rose after the Ministry of Transport announced Tuesday that it planned to spend 1 trillion yuan on infrastructure construction in 2009. The investment this year was expected to reach 800 billion yuan.

Shares of both Henan Zhongyuan Expressway Co. and Guangxi Wuzhou Communications Co. surged by the daily limit of 10 percent to 3.03 yuan and 4.62 yuan, respectively. Hainan Expressway Co. stocks advanced 8.23 percent to 2.5 yuan.

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