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Markets gain ground on Friday
( 2003-12-27 09:15) (China Daily)

China's shares closed a tad higher on Friday with investors selling top steel maker Baoshan Iron and Steel Co Ltd after Beijing scrapped import tariffs on steel products.

The benchmark Shanghai composite index, grouping hard-currency B shares for foreigners and yuan-denominated A shares, edged up 0.14 per cent to 1,514.775 points.

Baosteel, the world's fourth-most-valuable steel company, was one of the day's most active counters. The stock fell 1.35 per cent to 7.30 yuan (88.2 US cents).

Its stock had soared 77 per cent since the start of the year, riding a construction-fuelled boom in the domestic steel sector.

But gains in other stocks helped offset losses in the broader market.

Oil giant Sinopec Corp, Asia's largest refiner and the biggest firm on mainland bourses in terms of capitalization, rose 1.2 per cent to 5.06 yuan (61 US cents).

"The market, which saw a consolidation around the key resistance level of 1,500 points, is likely to extend gains in the medium term after the recent rally improved investor confidence,'' said analyst Qian Weihai of Jinxin Securities.

The Shanghai index had gained 15 per cent since hitting a four-and-a-half-year low on November 18, buoyed by technical buying after a persistent slump that lasted much of 2003.

 
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