Shanghai's key stock index rose in the morning session today, driven by gold and steel makers.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 1.24 percent, or 44.65 points, to 3,644.27 at 11:30am.
Gainers in the Shanghai market outnumbered losers 736 to 102, while 15 were unchanged.
The Shenzhen Composite Index, which covers the mainland's smaller stock market, was up 2.64 percent, or 28.17 points, to 1,095.80.
Gold miners jumped thanks to a sharp surge in global gold prices.
Zhongjin Gold, the country's biggest producer of the metal, advanced 5.07 percent to 75.40 yuan (US$10.76) while Shandong Gold, the second biggest, gained 6.25 percent to close the session at 136 yuan.
Gold for June delivery added US$13.60 to settle at US$926.80 an ounce on the New York Mercantile Exchange after earlier rising as high as US$933.70, its highest price in more than a week. Gold has gained nine percent so far this year, but remains well off its all-time high of US$1,038.60 that was reached on March 17.
Liuzhou Iron & Steel Co extended yesterday's 10-percent surge this morning over stronger profit growth.
Liuzhou Steel jumped 1.52 yuan, or the 10 percent daily limit, to 16.68 yuan. The company said 2007 profit rose 32 percent from a year earlier to 998.8 million yuan on sales that increased 27 percent.
Xinjiang Ba Yi Iron & Steel Co, controlled by Baosteel Group Corp, added 5.03 percent to 15.65 yuan. The company said first-quarter profit jumped 150 percent on higher steel prices.
Net income rose from 39.6 million yuan a year earlier, the company said in a statement to the Shanghai Stock Exchange today. China's largest steel maker Baosteel owns 53 percent of Ba Yi.
China Vanke Co, the country's largest publicly traded real-estate developer, was among those in the property sector to rise this morning.
Its shares increased 1.04 percent to 26.27 yuan. Vanke said today that it sold property worth 6.68 billion yuan in March, 228 percent more than a year earlier.
On the other side, China Petroleum & Chemical Corp, also known as Sinopec, lost 1.08 percent to close the session at 12.85 yuan.
Sinopec, Asia's biggest refiner said it is facing "a lot of pressure" because of losses from turning crude oil into fuel products. "There is great uncertainty whether fuel prices will be adjusted in the near term," Chairman Su Shulin told reporters in Hong Kong.
Oil rose 2.7 percent to settle at US$109.09 a barrel, the highest close since March 18, in New York yesterday as investors looked to commodity markets for higher returns. The intraday record of US$111.80 a barrel was set on March 17.
But the rising oil price gave a boost to other energy-related shares including coal producers on speculation near-record oil prices will boost demand for alternative fuel sources.
Yanzhou Coal Mine Co, the listed unit of China's fourth-biggest coal miner, jumped 6.07 percent to 17.31 yuan while China Shenhua Energy Co, the nation's biggest coal producer, added 2.64 percent to 45.46 yuan.
Shenhua plans to buy overseas assets as part of its strategy to increase output, Chief Executive Officer Ling Wen told a conference in Singapore today, Bloomberg News reported.
The company wants to achieve a 10 percent internal rate of return on its assets.
China's coal producers have added capacity to meet the higher energy needs of the world's fastest-growing major economy.
Shenhua intends to buy assets from its parent, as well as mines in Australia, Indonesia or Mongolia.
(Shanghai Daily April 8, 2008)
