CHINA’S SHANGHAI Composite Index, the benchmark tracker of A and B shares, closed up 1.83% at 2,996.21 on a standout performance from listed coal firms, which themselves track rising crude oil prices. Trading turnover was decidedly spirited, surpassing 347 bln yuan compared to the 239 bln tallied on Friday.
Meanwhile, Hong Kong’s benchmark Hang Seng Index fell 0.41% to 23,313.19 on its inaugural 9.30 am opening of trade day, bringing the bourse in-line with opening times in the PRC.
The main driver today was the 29-month highs in crude oil futures seen on the NYMEX on Friday, surging to over 104 usd per barrel, said a Chinese language report in SinaFinance.
The trading week got off to a bullish start, with gainers outnumbering losers today by a 1,648:405 ratio.
The surge in crude futures sent domestic coal valuations soaring, with many hitting their 10% daily upside limits.
The country’s top coal miner China Shenhua (SHA: 601088) surged 10% to 28.37 yuan, as did China Coal (SHA: 601898) to 11.87 yuan.
Other daily maximum gainers included Guoyang New Energy (SHA: 600348) which closed limit-up at 28.82 yuan, Shanxi Lu'an Environmental Energy Development Co (
Not only oil proxies had a memorable day, with direct beneficiaries being petroleum firms themselves.
Top domestic player in the oil sector PetroChina (SHA: 601857) closed up 2.63% at 12.1 yuan, while No.1 refiner China Petroleum & Chemical (Sinopec) (SHA: 600028) gained 1.03% to close the day’s trading at 8.84.
Lenders also breathed a collective sigh of relief after last week’s annual legislative gathering in Beijing failed to stimulate fresh hikes in either interest rates or reserve requirement ratios.
Minsheng Bank (SHA: 600016) rose 1.31% to 5.42 yuan and China Merchants Bank (SHA: 600036) edged up 0.1% to 14.23
Listed brokerages rode the market rally, lack of new central bank moves and general economic optimism with GF Securities (000776.SZ) closing up 4.94% at 46.35 yuan, CITIC Securities (600030.SH) adding 3.22% to 15.38, Guoyuan Securities (000728.SZ) rising 3.04% at 12.90 and Shanxi Securities Co Ltd (002500.SZ) ending the day 2.21% richer at 11.08.
Official proclamations from Beijing did add some zest to share prices today.
China’s Ministry of Commerce announced that February’s white goods/home appliance sales in the country’s rural areas shot up 168% year-on-year, backed by the ongoing state subsidies targeting more household consumption amid a drying up of external demand – China’s traditional engine of growth.
White goods industry giant Qingdao Haier Co Ltd (SHA:600690) added 4.36% to close at 31.09 yuan, while major supplier to the sector Baosteel (SHA: 600019) 2.26% to 7.23.
See also: CHINA SHARES Finish February With Flurry, Add 0.92%
