bojan76
/ 2007-02-28 06:45
/
Uznany Gracz Giełdowy
Miód na moje skołatane serce:
28 Feb 2007 04:25
China shares stabilise after Tuesday's rout
SHANGHAI, Feb 28 (Reuters) - Chinese stocks stabilised on Wednesday as buying by local funds in financial blue chips pushed up the main Shanghai index slightly after a plunge of nearly 9 percent on Tuesday unsettled markets around the world.
Many analysts and traders said that while investors were nervous, Tuesday's tumble was probably not the start of a long-term bear market in Chinese stocks, since factors behind last year's bull run remained.
These factors include strong corporate earnings growth and billions of dollars waiting to be invested by newly created mutual funds, they noted.
"The medium- and long-term outlook for the market is not bad. If the index doesn't fall again tomorrow, the market might start recovering," said Zhou Lin at Huatai Securities.
The Shanghai Composite Index , which sank 8.84 percent on Tuesday in its biggest fall for a decade, ended Wednesday morning 0.25 percent higher at 2,778.672 points. It hit a low of 2,732.884 soon after the opening but quickly bounced.
A total of 444 shares rose while 387 fell. Turnover in Shanghai A shares was active at 49.2 billion yuan ($6.4 billion), though down from Tuesday's record levels.
Industrial & Commercial Bank of China , the country's biggest bank with a weighting of over 10 percent in the index, rose 1.71 percent to 4.77 yuan after dropping 8.04 percent on Tuesday. ($1 = 7.74 yuan)