Markets

Shares rise on positive global economic outlook

By Irene Shen (China Daily)
Updated: 2011-04-21 13:45

SHANGHAI - Stocks on the Chinese mainland rose on Wednesday, spurring a rebound for the benchmark index from the steepest drop in two months, as a jump in the US housing starts bolstered the outlook for the global economy and commodity prices advanced.

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Jiangxi Copper Co Ltd and PetroChina Co led gains for material companies. Shanghai Automotive Industry Corp climbed for the first time in four days.

Xinjiang Goldwind Science & Technology Co Ltd, a maker of wind turbines, plunged 6.68 percent to 17.88 yuan ($2.74) after saying that its first-quarter profit dropped 17 percent.

The Shanghai Composite Index advanced 0.27 percent to 3007.04 at the 3 pm close. The CSI 300 Index changed little at 3295.76 on Wednesday.

"The plunge on Tuesday was a short-term over-reaction," said Wang Cheng, a strategist at Guotai Junan Securities Co Ltd in Shanghai. "The outlook for the global economy is still positive for the mid-term. Companies with low valuations are a favorite of investors."

China's economic activity is "moderating" as government tightening measures take effect, the New York-based Conference Board Inc said.

Crude oil for June delivery rose as much as 92 cents to $109.20 a barrel in electronic trading on the New York Mercantile Exchange.

CSC Nanjing Tanker Corp lost 3.38 percent to 6.01 yuan, the biggest decline since March 4. The stock was cut to "neutral" at Shenyin & Wanguo Securities Co, which cited overcapacity in the oil shipping industry and the company's "relatively high" price-to-book-value ratio. The previous rating was "outperform", according to data compiled by Bloomberg.

Hong Yuan Securities Co slid 3.06 percent to 17.76 yuan, the most since March 17. The brokerage said that first-quarter net income fell 19 percent from a year earlier to 339 million yuan.

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