China’s key index rises 7.2 percent for the week

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SHANGHAI: China’s main stock market index rose for a fifth day Friday, gaining 7.2 percent for the week as higher commodity prices pushed up oil, coal and metals stocks.

The benchmark Shanghai Composite Index added 15.33 points, or 0.7 percent to close at 2,281.09. The Shenzhen Composite Index for China’s smaller second exchange fell 0.02 percent to 752.35. For the week, it rose 8.6 percent.

Resource stocks, a focus of China’s weeklong rally, rose after the U.S. Federal Reserve rolled out a $1.2 trillion plan to buy government bonds and debt securities, fueling inflation fears and raising commodities prices.

“This round of the rally was not based on optimism over the economy, but an expectation on future inflation,” said Wen Lijun, an analyst for Nanjing Securities.

Jiangxi Copper Ltd., China’s second-largest metal producer, and Zhongjin Gold Corp both surged the daily maximum of 10 percent, Jiangxi Copper to 22.33 yuan, and Zhongjin Gold to 57.38 yuan.

Aluminum Corp. of China, or Chinalco, the country’s biggest aluminum producer, climbed 4.7 percent to 10.98 yuan.

China’s two main oil companies rose after the April crude future surged to above $50 a barrel overnight. PetroChina Ltd., Asia’s biggest oil and gas producer, leapt 4.8 percent to 11.57 yuan and China Petroleum & Chemical Corp., Asia’s biggest refiner by volume, climbed 2.3 percent to 8.77 yuan.

Coal miners also benefited from higher energy prices. Anhui Hengyuan Coal industry Co. gained 6.1 percent to 22.4 yuan and Datong Coal Co. rose 2.2 percent to 18.04 yuan.

In currency markets, the yuan weakened slightly to 6.8267 to the U.S. dollar, down from Thursday’s close of 6.82447.

Via[iht.com]

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