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China's shares ended higher yesterday as punters invested in tourism firms such as China Travel as SARS fears waned, brokers said.
The Shanghai composite index, grouping A and B shares, climbed 8.557 points, or 0.55 per cent, to close at 1,569.512 points, while the Shenzhen sub-index also gained 25.11, or 0.72 per cent to finish at 3503.37.
Hard currency B shares in China International Travel Service Co topped the gainers in Shanghai with a rise of 4.39 per cent to US$0.69.
It had fallen nearly 20 per cent since mid-April due to the outbreak of Severe Acute Respiratory Syndrome (SARS).
Shanghai's hard currency B share index rose 0.47 per cent to 116.683 points, while Shenzhen's climbed 1.48 per cent to 221.72. B shares are open to Chinese and foreigners.
"As fears of travel due to SARS are diminishing, punters began to hunt for bargains," said Huatai Securities analyst Qu Xing.
Also outperforming the market were shares in aviation and expressway companies as punters believed a recovery in tourism would help such firms, analysts said.
Shandong Airlines was the best B share performer in Shenzhen, closing 6.23 per cent higher at HK$2.90 (37 US cents).
Toll-way operator Anhui Expressway was the top A share gainer in Shanghai with a 10 per cent rise, its daily limit, to 5.92 yuan (71.5 US cents).
The yuan-denominated Shanghai A share index rose 0.55 per cent to 1,643.734 points while its counterpart was up 0.64 per cent at 459.35.
Analysts saw little impact from a Hong Kong newspaper report that China would soon launch a qualified domestic institutional investors (QDII) program, allowing Chinese to trade shares listed overseas.
A regulatory official said the QDII scheme was not an immediate priority.
China's yuan ended slightly weaker at an intraday low of 8.2771 against the US dollar yesterday due to rising demand of hard currency from importers, dealers said.
The yuan move narrowly in the session, touching an intraday high of 8.2768, which was also Friday's close. Monday's turnover fell to a thin US$340 million from US$540 million.
"A rise in importer dollar demand helped push the yuan a little lower, but the fall today did not change the yuan's overall strength," said a domestic bank dealer.
The Chinese currency has stayed on the firm side of a tiny range of 8.2760 to 8.2800 set by the central People's Bank of China over the past year due to the country's trade surplus, which ensured a steady dollar inflow to the market.
The yuan weakened to 7.0751 to 100 Japanese yen from 7.0587 and softened against the euro to 9.7797 from 9.6718. It closed three notches weaker against the Hong Kong dollar at 1.0610.
Shanghai copper futures closed higher yesterday, but trade was slow as the London Metal Exchange was on a bank holiday, traders said.
Shanghai's most active October 2003 futures ended up 50 yuan (US$6.04) at 17,300 yuan (US$2,090) a ton. Other contracts ended 40 yuan (US$4.8) to 110 yuan (US$13.2) higher. Combined market volume fell to a meagre 21,802 lots from Friday's moderate 58,670 lots.
The LME was closed yesterday for late spring bank holiday, while US markets were shut for Memorial Day, removing keys reference point for China's futures market.
On Friday, LME three-month copper closed at US$1,682 a ton, down US$11 from Thursday's kerb close.
"Some speculative buying helped push up Shanghai prices," said a Chinese trader.
But volumes were small, indicating the mood was cautious as most investors thought about where the LME would head when it resumes trade on Tuesday, traders said.
Spot copper in Shanghai was quoted unchanged at a range of 17,270 to 17,370 yuan (US$2,085.75-2097.83) per ton.
(China Daily May 27, 2003)
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