Domestic stocks rose for the first time in five trading days this morning. Airlines and oil refiners rebounded after the price of crude oil saw its biggest single-day drop in three months.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, added 1.33 percent, or 68.85 points, to hit 5,226.97 at 11:30 am today.
The Shenzhen Composite Index, which covers the smaller mainland stock market, increased 0.99 percent, or 12.62 points, to 1,284.36.
Among the stocks on the Shanghai Composite Index, 671 rose, 100 fell and 75 were unchanged.
Oil prices that last week seemed to be on an inexorable path toward US$100 a barrel slid more than US$3 to US$91 yesterday after the International Energy Agency cut its demand forecasts and said crude supplies are rising.
Air China, the world's biggest airline by market value, jumped 3.45 percent, or 0.63 yuan (8 US cents), to 18.91 yuan while China Eastern, the nation's third-largest carrier, added 2.20 percent, or 0.29 yuan, to 13.49 yuan. China Southern, the nation's biggest carrier, climbed 3.72 percent, or 0.73 yuan, to 20.35 yuan.
China Petroleum, Asia's biggest oil refiner, gained 0.81 percent, or 0.30 yuan, to 37.33 yuan while Sinopec surged 0.83 percent, or 0.19 yuan, to 23.20 yuan this morning.
But Sinopec Shanghai Petrochemical Co, China's largest maker of ethylene, slid 0.53 percent, or 0.08 yuan, to 14.92 yuan.
Consumer-related stocks such as Tsingtao Brewery Co advanced after a government report showed China's retail sales grew at their fastest pace in more than eight years.
Tsingtao Brewery, part-owned by Anheuser-Busch Co, gained 3.65 percent, or 1.12 yuan, to 31.80 yuan. Kweichow Moutai Co, the maker of Moutai, the fiery liquor used at official banquets, rose 2.26 percent, or 4.02 yuan, to 181.80 yuan.
China's retail sales rose 18.1 percent to 826.3 billion yuan (US$111 billion) on a year-on-year basis in October, the biggest advance since 1999 when the government started releasing numbers, the National Bureau of Statistics announced this morning.
Gold producer fell as the price of the metal slipped, raising concerns about producers' earnings.
Zhongjin Gold, China's largest publicly traded gold miner by market value, dropped 2.51 percent, or 2.62 yuan, to 101.80 yuan. Shandong Gold Mining Co, the second-biggest miner, fell 4.94 percent, or 7.43 yuan, to finish the session at 143 yuan.
Gold fell 1.1 percent to US$799 an ounce in New York yesterday, the first close under US$800 since November 1, after tumbling 3.2 percent a day earlier.
(Shanghai Daily November 14, 2007)
