Chinese shares rebounded on Thursday, closing up 4.52 percent, with oil majors leading the gains following an overnight rally in crude prices, dealers said. The Shanghai Composite Index, which covers A and B shares, was up 126.00 points at 2,911.58 on turnover of 122.1 billion yuan (17.9 billion dollars). The key index has been volatile in recent sessions, weighing on other regional markets.
It dropped 5.79 percent on Monday, rose 1.40 percent on Tuesday and then tumbled 4.30 percent on Wednesday. "The Shanghai index was propped up by gains in PetroChina today. The index's roller-coaster ride this week demonstrates how nervous investors are," Haitong Securities analyst Zhang Qi told Dow Jones Newswires.
Analysts said the market volatility showed investors were divided about the outlook of the market, while the shrinking trading volume suggested investors remained cautious. Energy stocks led Thursday's gains on rising crude oil prices. PetroChina ended 6.9 percent higher at 13.88 yuan.
The company has a 20 percent weighting in the Shanghai index, which means each five percent rise in the company's prices will add 100 points to the index, analysts said. China Petroleum and Chemical Corporation ended up 2.9 percent at 13.00 yuan, and China Shenhua Energy rose 7.9 percent to 32.50.
The Shanghai A-share index rose 132.35 points, or 4.53 percent, to close at 3,055.97 on turnover of 121.7 billion yuan. The Shenzhen A-share index gained 36.96 points, or 3.82 percent, to 1,004.37 on turnover of 62.3 billion yuan. The yuan closed the day at 6.8318 against the US dollar, up from Wednesday's finish of 6.8341. The Shanghai B-share index was up 6.79 points, or 3.62 percent, to 194.17, while the Shenzhen B-share index added 18.37 points, or 3.87 percent, to 493.54.
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