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Chinese shares closed 0.59 percent higher in the last trading session of the week as institutional players rebuilt their positions in top Asian refiner Sinopec Corp.
The benchmark Shanghai composite index closed at 1,293.297 points on Friday after declining in the morning session. The market fell 0.25 percent on Thursday after hitting a one-year high on Wednesday as investors took profits.
Sinopec mostly fell during the week after it denied media reports that it may form a venture with global energy giant BP Plc.
But dealers said institutional players bought back into the stock on expectations that high oil prices would boost its earnings. Sinopec jumped 2 percent to 5.29 yuan.
Bucking the trend, banking counters slipped following strong gains earlier in the week.
Top Shanghai-listed lender China Merchants Bank, the session's most actively traded stock, fell 1.41 percent to 6.28 yuan while smaller rival Minsheng Banking Corp, China's first private bank, dropped 1.37 percent to 5.03 yuan.
China's benchmark index has been Asia's worst performer over the past two years but it started to rebound, and has gained about 12 percent, since the beginning of the year.

Copyright Reuters, 2006

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