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China's shares rose yesterday as investors favored drug stocks, betting the deadly flu-like SARS outbreak will benefit them, brokers said.
But they said financial counters did not fare as well, falling after a bout of profit-taking.
Shanghai's composite index rose by 7.364 points, or 0.46 percent, to 1,613.604 while Shenzhen's sub-index edged 7.45 points, or 0.22 percent, to 3,453.32.
Shanghai's hard currency B-share index nudged up 0.51 percent to 129.001 points while Shenzhen's rose 1.08 percent to 229.46. B shares are open to Chinese and foreign investors.
Punters bought heavily into drug firms in the afternoon, partly due to the rising number of SARS cases in China, as they believed drug firms would benefit from the illness, analysts said.
Livzon Pharmaceutical Group Inc, based in the southern province of Guangdong where most of China's SARS cases have been reported, was among the top gainers in Shenzhen with a 3.96 percent rise to HK$5.25 (US$0.695).
Henghe Pharmaceutical was Shenzhen's top A-share performer, rising its 10 percent daily limit to 8 yuan (US$0.963).
Analysts said wary punters cashed out of financial counters after recent rises spurred by the fast-growing economy.
"Although some investors unloaded financial shares to take profit, the overall market sentiment was still strong," said analyst Yu Xiaoli of Haitong Securities.
"We expect the overall market to continue its uptrend in the near term."
Yuan-denominated A shares in China Merchants Bank dropped 1.3 percent to 12.47 yuan (US$1.5) with 97.3 million shares changing hands. The second most actively traded stock in Shanghai yesterday has gained 15.5 percent since April 7.
Minsheng Bank, China's sole private bank, was the third biggest decliner in Shenzhen with a 4.5 percent fall to 11.46 yuan (US$1.38). It has risen more than 20 percent over the past week.
It reported a 43 percent rise in net profit for the first quarter, thanks to rapid expansion in its core business.
(China Daily April 18, 2003)
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