Index strikes 4440, a new high

Index strikes 4440, a new high

Extending last week's gain, the benchmark Shanghai Composite Index surged more than 90 points and shot up to another new high on Monday. Optimism following high corporate half-year earnings still served as the major force behind the bullish market.


Opening at 4348.61 points, the index moved upward with a few swings to conquer the previous high of 4371 and then the psychologically important 4400 point mark in the morning. After a short break around noon, it continued its march in the afternoon and finally closed at 4440.77, 2.2 percent higher than last weekend's close. Total trading value of the market reached 155.4 billion yuan, mildly expanded for the fourth time in as many days.

The Shenzhen Component Index followed suite with a close of 15060.86 points, increasing 3.06 percent with a turnover of 86.6 billion yuan. The close broke the index record set last Thursday.

Of all stocks, 1133 closed higher, only 138 remained flat, and 188 went down. The steel making, metal, and real estate sectors led today's gain. Vanke, China's leading property developer, rose 4.36 percent and closed at 28.49 yuan per share. Metal producer Chihong Zinc & Germanium sealed the maximum rise for the day.

Sound earning prospects have served as the driving force behind stock prices. Shares of China Life gained 3.21 percent after the nation’s largest insurer said first-half profit might more than double from a year earlier in a statement to the exchange today. Yangtze Power Co, operator of the world's biggest hydropower project, said first-half profit jumped 72 percent due to the rise of electricity output and investment profit. Although its trading was suspended today, a higher open is expected tomorrow.
Thirteen research institutions predicated on Sunday that China's consumer price index (CPI) in the third quarter would rise to a record high of 4.5 percent and the central bank would increase the interest rate again in the fourth quarter. But even so, investors' confidence would not be greatly affected, as many believe, because the possible monetary tightening is aimed at preventing inflation and ensuring stable economic development. As long as the corporate earnings keep growing and the market liquidity remains at a proper level, there are more record days to expect from the exchanges.