Chinese shares closed slightly up on Tuesday, rebounding from the biggest drop in nine months on Monday's trading, as steel and energy-related shares gained.
The benchmark Shanghai Composite Index was up 1.40 percent, or 40.25 points, to close at 2,910.88. The Shenzhen Component Index added 0.9 percent, or 104.50 points, to finish at 11,773.30.
Combined turnover on the two bourses shrank to 180.2 billion yuan (US$26.38 billion) from previous trading day's 214.47 billion yuan.
Gainers outnumbered losers by 689 to 173 in Shanghai and 605 to 133 in Shenzhen.
The gauge index tumbled 5.79 percent on Monday's close, posting its biggest daily percentage drop in nine months on worries about shrinking liquidity and pessimistic economic forecasts. The index opened 0.88 percent lower Tuesday, dragged down by heavyweights in the morning trade secession. It was driven up by coal and non-ferrous shares in the afternoon, rebounding to 2,900 ahead of closing.
Steel sectors rose 4.01 percent, driving up the gauge index as its 35 shares posted gains. Anyang Iron and Steel Group Co., and Chongqing Iron and Steel Co., rose by the daily limit, to close at 5.92 yuan, and 5.96 yuan, respectively.
The China Iron and Steel Association (CISA) announced Monday it has reached an agreement with Anglo-Australian Fortescue Metals Group Ltd. (FMG) on a 35.02-percent price cut for iron ore fines.
Coal stocks added 1.35 percent on better earnings prospect. Shanxi Lanhua Sci-Tech Venture Co., rose 4.6 percent to 38.18 yuan. Sichuan Shengda Industrial Co., and Shanxi Coking Group Co., advanced more than 3 percent.
Brokerage stocks posted widespread losses on Everbright Securities's Shanghai debut Tuesday. The country's 11th biggest brokerage by assets, jumped 29.8 percent from its offer price after a 11 billion yuan initial public offerings, to close at 27.4 yuan.
Ping An Insurance (Group) Co., the second biggest Chinese insurer, lost 0.93 percent to 50.09 yuan, declining for a second day after its first-half profit slumped 45 percent. China Merchants Bank, the country's sixth largest lender, slumped 0.87 percent to 16.02 yuan.
The Shanghai Composite Index has lost more than 17 percent since it hit the 14-month high of 3,471.44. Tuesday's gains signal a correction of the slump on Monday's trading, and there is still room for a further rise, dealers said.
(Xinhua News Agency August 19, 2009)
