China shares posted healthy gains on Friday as investors snapped up financial counters such as Merchants Bank after several days of weakness in the key index.
The benchmark Shanghai composite index gained 1.41 percent to close out the week at 1,613.894 points. But it was still down 2.6 percent for a week as shares were pressured by profit-taking.
"Blue chips rebounded from the earlier losses, but investors were cautious and trading volumes low," said analyst Wu Ang with CITIC Securities.
Two of the most active shares traded in Shanghai on Friday were banking counters.
Minsheng Banking Corp, China's first private lender, gained 2.05 percent to 4.47 yuan, while top Shanghai-listed lender China Merchants Bank Co Ltd rose 0.82 percent to 7.39 yuan.
Increasing confidence in the financial services sector buoyed Merchants Bank, which had fallen 8 percent in two weeks through Tuesday due to profit-taking after strong gains this spring.
Asia's largest refiner, Sinopec Corp, which is also China's number-two oil and gas producer, bucked the trend, shedding 0.3 percent to close at 6.71 yuan. It has lost 7 percent in the last two weeks due to a slight rise in oil prices.
Top Chinese steel maker Baoshan Iron and Steel Co Ltd rose 0.9 percent to 4.48 yuan, after the company raised its third-quarter steel prices earlier this week. Smaller rival Baotou Iron and Steel jumped 3.04 percent to 2.37 yuan.
The Shanghai benchmark has climbed 39 percent so far this year, boosted by market-friendly government steps including encouraging great participation of mutual funds in stock trading.
Comments
Comments are closed.