Tuesday, February 15, 2011

CHINA: Anhui Jianghuai, Beijing Sanyuan, Huaxin Cement

Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses and prices are as of 2:34 p.m.

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, gained 0.6 percent to 2,916.06. The CSI 300 Index rose 0.6 percent to 3,238.86.

Anhui Jianghuai Automobile Co. (600418 CH) advanced 2.2 percent to 12.87 yuan, the highest since Nov. 11. China’s passenger-car sales in January rose 15.3 percent from a year earlier to 1.4 million units, China’s Passenger Car Association said in a statement.

Cement companies: Huaxin Cement Co. (600801 CH), the Chinese affiliate of Holcim Ltd., surged 7.7 percent to 39.93 yuan, set for the highest close since Jan. 18, 2008. Anhui Conch Cement Co. (600585 CH), China’s biggest cement maker, rose 1.8 percent to 34.38 yuan.

China International Capital Corp. said prices of the building material will increase and 2010 corporate earnings may have exceeded estimates last year. Demand will help boost prices while companies including Anhui Conch and Huaxin Cement may report more than a 50 percent increase in first-quarter profit, Luo Wei and Guan Xue, analysts at CICC wrote in a report dated yesterday.

Gemdale Corp. (600383 CH), a property developer, fell 0.9 percent to 7.04 yuan. China may raise the interest rate on existing mortgages for second homes to 1.1 to 1.2 times the benchmark rate under a trial program in Beijing and Shanghai, the 21st Century Business Herald reported, citing an unidentified person close to banks.

Beijing Sanyuan Foods Co. (600429 CH), a dairy producer, jumped by the maximum 10 percent to 7.65 yuan. China’s dairy industry will grow 10 percent yearly with upstream and liquid milk “leaders” benefiting from high barriers to entry and “more visible” growth, according to Citigroup Inc.

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