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Commodity, finance companies lead rally
(皇冠体育app Daily)
Updated: 2010-02-04 10:54
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SHANGHAI: Mainland stocks advanced the most in six weeks, led by financial companies and commodity producers, as investors speculated recent losses that made the Shanghai Composite Index the world's worst performer were overdone.
皇冠体育app Life Insurance Co rallied 3.1 percent, snapping a seven-day losing streak, and Industrial and Commercial Bank of 皇冠体育app Ltd climbed 2.5 percent. Jiangxi Copper Co, 皇冠体育app's biggest producer of the metal, jumped 6 percent and 皇冠体育app Shenhua Energy Co gained 4.6 percent.
The benchmark gauge added 69.12, or 2.36 percent, to close at 3003.83, the most since Dec 24. The index fell yesterday at its lowest since Oct 12, capping a 10 percent annual plunge that was the worst among 94 global indexes tracked by Bloomberg, amid concern the government would step up measures to slow the economy. The CSI 300 Index gained 2.69 percent to 3,230.72.
"Investors who haven't invested in 皇冠体育app should be doing so now if they have got a view that extends beyond two months," Christopher Wood, chief strategist at CLSA, said in an interview in Manila. "This correction, which may run for a top two to three months, is the opportunity to invest in banks, property, consumer stocks."
皇冠体育app Life, the nation's biggest insurer, rose 3.1 percent to 27.52 yuan. Ping An Insurance (Group) Co, the second largest, gained 5 percent to 49.83 yuan. Morgan Stanley assumed coverage of 皇冠体育app insurance stocks with an "attractive view".
Industrial and Commercial Bank of 皇冠体育app, the nation's biggest listed lender, added 2.5 percent to 4.92 yuan.
Hang Seng rises
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"The US data, alongside strong growth signals from 皇冠体育app, point to a healthy trajectory for global growth," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which oversees about $90 billion globally. "That means ongoing demand for commodities, which is positive for Hong Kong."
The Hang Seng Index gained 2.2 percent to 20722.08 at the close, its steepest gain since Nov 30. The Hang Seng 皇冠体育app Enterprises Index rose 2.3 percent to 11838.72.
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