Chinese Index Sets a Third Straight Record High

Chinese stocks rose to a record high for the third straight day after copper futures in Shanghai advanced to the highest in three months. Anhui Tongdu Copper Stock Co led the gains.

"The commodity market is still in a bull mode and that will fuel gains in metals' shares," Wu Kan, an analyst at Shanghai Securities Consulting Co in Shanghai told Bloomberg. "There are also expectations that copper companies will receive good-quality assets from parents."

The Shanghai Composite Index, which tracks the bigger of mainland's stock exchanges, rose 0.1 percent, to 3,074.29, setting a third straight record.

The Shenzhen Composite Index, which covers the smaller one, advanced 1 percent, to 816.92, its fourth consecutive record.

Anhui Tongdu Copper Stock Co, the listed arm of China's largest copper producer by 2006 output, surged 0.81 yuan (1 US cent), or 7.65 percent, to 11.40 yuan. Copper for delivery in June on the Shanghai Futures Exchange rose as much as 840 yuan, or 1.4 percent, to 61,840 yuan a metric ton today as demand in China strengthened.

Jiangxi Copper Co, China's second biggest producer of the metal by 2006 output, gained 0.19 yuan, or 0.96 percent, to 19.98 yuan. Yunnan Copper Industry Co, China's third largest smelter of the metal, increased 0.41 yuan, or 2.3 percent, to 18.12 yuan.

Elsewhere, China Yangtze Power Co, operator of the world's biggest hydropower project, rose 0.40 yuan, or 3.26 percent, to 12.66 yuan. Suning Appliance Co, China's second-biggest home-appliance retailer, added 3.20 yuan, or 5.31 percent, to 63.5 yuan.

Citic Securities Co, the country's biggest publicly traded brokerage, slid 1.14 yuan, or 2.74 percent, to 40.41 yuan. The shares have gained 48 percent so far this year. China Minsheng Banking Corp, the nation's first privately controlled lender, lost 0.21 yuan, or 1.77 percent, to 11.64 yuan. China Vanke Co, the country's biggest listed property developer, lost 0.32 yuan, or 1.93 percent, to 16.23 yuan.

Laiwu Steel Corp, in which Arcelor Mittal is seeking a stake, fell 0.47 yuan, or 3.35 percent, to 13.57 yuan. The company reported a fourth-quarter profit as it produced more high-grade alloy and reduced costs. Net income was 163.1 million yuan in the three months ended December 31, compared with a loss of 12.1 million yuan a year earlier.

(China Daily March 24, 2007)