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China's shares edged up yesterday as investors bought into China United Telecommunications Corp Ltd before the unit of the country's number two mobile carrier reports its 2002 results, brokers said.
The Shanghai composite index, grouping A and B shares, closed up 11.968 points or 0.79 percent to finish at 1,522.546 points, while the Shenzhen sub-index also edged up 17.05 or 1.55 percent to end at 3118.91.
Yuan-denominated A shares in Unicom, the second largest company by market capitalization, rose 2.03 percent to 3.01 yuan (US$0.36) on hefty volume of 114.79 million shares, the day's most active issue.
"China Unicom dominated trading as punters bet on healthy results for last year," said analyst Zhang Qi at Haitong Securities.
Some analysts said Unicom's 2002 profits, which the firm was scheduled to announce after the market closed, may be about 5 percent higher than in 2001.
Shanghai's B-share index finished 0.27 percent higher at 122.798 points, while Shenzhen's rose 0.51 percent to 204.12. Hard-currency B shares are available to Chinese and foreign investors.
Regional carrier Shandong Airlines bucked the broad uptrend and was the top B-share decliner, falling 3.29 percent to HK$3.23 after the company reported a net loss of 45.58 million yuan (US$5.51 million) for 2002.
The firm said the acquisition of too many aircraft in 2002, which incurred high import taxes, contributed to the heavy loss.
Analysts said they expected share indices to move narrowly, with the benchmark Shanghai composite index sandwiched between 1,470 and 1,530 points in the near term.
"There is apparently some recent institutional support for large capitalized companies such as Unicom and China Merchants Bank," said analyst Ding Chaoyu at United Securities. "Share indices cannot drop sharply even if there are falls."
Market heavyweight China Merchants Bank's A shares finished 1.65 percent higher at 10.45 yuan (US$1.25).
But the indices would also have little potential to rise sharply due to uncertainties resulting from the corporate earnings reporting season, which lasts until April 30, and the Iraq war, analysts said.
Shanghai's A-share index ended up 0.80 percent at 1,592.453 points and Shenzhen's rose 0.71 percent to 450.16.
(China Daily April 2, 2003)
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