Metals on mettle as mainland index lifts

METAL stocks pushed up the domestic stock market yesterday, with rising gold and copper prices to the fore.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, rose 0.78 percent, or 41.71 points, to close at 5,361.57.

Turnover in Shanghai's A-share market reached 146 billion yuan (US$20 billion). Gainers lagged losers by 382 to 450, with 69 stocks unchanged.

The CSI 300 Index, which tracks yuan-denominated A shares on the mainland's two exchanges, gained 1.14 percent, or 61.12, to 5,483.65 points.

Zhongjin Gold, the nation's largest listed gold miner by market value, jumped by the 10-percent daily limit to 138.14 yuan per share and the second-largest, Shandong Gold Mining Co, also rallied 10 percent to 210.76 yuan.

Gold futures climbed to a record closing price of US$869 in New York on Thursday as the weakened greenback and rising crude price drove many investors to metal as a hedge against inflation.

Jiangxi Copper Co, the country's second-largest producer, advanced 8.17 percent to 55.59 yuan and Yunnan Copper, the third-biggest, surged 10 percent to 60.06 yuan.

Copper contracts surged by the four percent limit to 59,800 yuan a metric ton in Shanghai yesterday as demand outstripped supply after overnight gains in prices on the London Metal Exchange and in other commodities.

"The abundant capital helped the market regain vigor and the upward trend will last until the Spring Festival," said Zhang Qi, an analyst at Haitong Securities Co.

The financial sector recovered from a broad sell-off. Pudong Development Bank rose 4.21 percent to 53.01 yuan and Bank of Nanjing added 3.8 percent to 19.69 yuan.

Citic Securities, China's biggest publicly traded brokerage, rose 4.11 percent, to 88.50 yuan and Haitong Securities lifted 4.43 percent to 54.48 yuan.

Asia's biggest oil refiner, China Petroleum & Chemical Corp, or Sinopec, edged up 0.08 percent to 23.80 yuan on news that parent China Petrochemical Corp's net income rose 38 percent to 70 billion yuan last year.