Wednesday, June 22, 2011

CHINA: Cement producers and developers lead Shanghai shares up.

SHANGHAI'S key stock index rose for the first time in five days, led by cement producers and property developers. 

The benchmark Shanghai Composite Index rose 0.96 percent to 2,646.48 points. Turnover rose to 74.1 billion yuan (US$ 11.5 billion) from yesterday's 66 billion yuan.

Property developers extended previous gains on news that the State Council has allowed companies and financial services firms to issue corporate bonds to raise funds for building affordable homes. China Merchants Property Development Co climbed 1.7 percent to 17.24 yuan. Poly Real Estate Co rose 1 percent to 10.53 yuan.

Cement producers rallied on speculation that demand will increase as more affordable homes projects were started. Anhui Conch Co jumped 4.3 percent to 26.31 yuan. Guangdong Tapai Group Co climbed 5.7 percent to 10.04 yuan.

Coal miners rose on news that an energy industry area of 133,800 square kilometers will be built in China's western provinces rousing speculation for more investment in the sector. China Shenhua Energy Co rose 0.7 percent to 28.20 yuan. Shanxi Xishan Coal and Electricity Power Co rose 0.7 percent to 22.79 yuan.

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