Chinese shares up

17 Jun, 2006

Chinese shares chalked up their biggest single-day percentage gain in a month on Friday, as bargain hunters snapped up blue chips after recent declines.
The benchmark Shanghai Composite Index rose 2.64 percent to 1,574.467 points, the strongest gain since May 15 when it advanced 3.82 percent. The index gained only moderately in the morning but accelerated in the afternoon.
Turnover increased as well, with trade in Shanghai A-shares totalling 18.6 billion yuan ($2.3 billion), up from 15.6 billion on Thursday.
"Investors are back in the mood to build positions again after a brief respite," said Zhang Yong, an analyst with Shanghai Securities.
Banking stocks surged on Friday, as liquidity concerns caused by the upcoming domestic initial public offer of Bank of China appeared to ease.
Top Shanghai-listed lender China Merchants Bank Co Ltd advanced 3.17 percent to 7.16 yuan, while Pudong Development Bank, Citigroup's China partner, surged 6.65 percent to finish at 9.3 yuan.
The huge deep-water gas field in the South China Sea announced on Thursday also helped lift market sentiment, sending Sinopec Corp up 5.6 percent to 5.86 yuan. It was the most actively traded stock.

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