Previous Market Report: Shanghai Composite Index Falls Slightly on Mixed Earnings Results
The Shanghai Composite Index closed Thursday at 2350, up 0.34 percent, offsetting Wednesday’s loss. The CSI 300, a benchmark for the index consisting of 300 big movers,louis vuitton, rose 0.45 percent to close at 2335. Much of today’s action came from investor response to the half-year earnings reports that have just been filed.
China’s offshore giant CNOOC (SHSE:601808) gained 4.26 percent to close at 16.16 yuan on news that net profits soared 89 percent year-on-year,sac longchamp pas cher, buoyed by higher output and just as high oil prices. Yesterday CNOOC announced its proposal to acquire Norway Awilco Offshore. The deal is awaiting approval from the China Securities Regulatory Commission (CSRC). CNOOC offered a tender offer at the amount of US＄ 2.5 billion to buy 100-percent shares in the offshore drilling company. As China’s second largest oil company by market capitalization,maillot de foot pas cher, CNOOC is proceeding with an ambitious global expansion after its 2005 bid to acquire the American company Unocal was shot down by the U.S. Congress.
CNOOC gained 4.26 percent; Alibaba soared 10 percent. Power producers fell,louboutin pas cher, while hotel and tourist stocks were given a boost by state support.
Power producers fell amid reports of falling net sales profits. Guodian (SHSE: 600795) fell 0.6 percent to close at 5 yuan. The drop followed news of a 44-percent decrease in net profits year-on-year, with earning per share a meager 0.06 yuan.
Bank of China denounced a recent media report saying that more than 100 terror victims filed a class action lawsuit against the Los Angeles branch for allowing millions of dollars to be wired by Hamas and the Palestine Islamic Jihad. The bank spokesperson found these accusations as “groundless and ridiculous” and said that the state bank is ready to go to the court to “clarify the truth with facts.”
Alibaba (HKSE: 01688),abercrombie, China’s leading B2B e-business company, climbed 10 percent to close at 10.24 on first-half reports that the company’s net profit skyrocketed 136 percent year-on-year. The boost comes after a 66-percent drop in price since the beginning of the year and a 35-percent fall in the last three months.
The three power companies all found their operational costs grew faster than their operational revenue growth. Merrill Lynch said in a recent report that,, with China on the brink of a power crisis, the government should raise power tariffs again. With further hikes to power rates and fuel prices suspected this year, power and electricity companies are struggling to keep their income statements in the green.
A smaller power producer Jiurong Power (SHSE: 600292) climbed to 3.85 yuan,air jordan, up 0.52 percent, but had also fallen more than 60 percent since this year. At the half year, Jiurong had lost more than 26 million yuan in net profits,jordan, with its earnings down 145 percent year-on-year. Both China Huaneng and Jiurong Power estimate that losses will not stop in the third quarter if the state does not raise power rates substantially.
By staff reporter Wang Zhen
China Huaneng (SHSE: 600011) posted first-half net profit losses at 470 million yuan, down 115 percent from the same period last year. The company’s stock climbed 1.35 percent to close at 5.99 yuan, putting an end to four days of decreases. Huaneng has lost 60 percent share value since the beginning of the year.
Bank of China (SHSE: 601988, HKSE: 03988) gained 0.83 percent to close at 3.65 yuan, in contrast to its 1.48-percent retreat in Hong Kong. The bank will announce its interim report August 29.
Hotel and tourism stocks were given a boost upon yesterday’s announcement by the National Development and Reform Commission (NDRC), China’s planning agency,louis vuitton pas cher, that the Chinese tourist industry should be developed to provide more jobs. The state said that by 2015, the nation’s tourist sector will offer approximately 100 million jobs,christian louboutin pas cher, what would be a 40-percent increase from the present.
Bank of Communications (SHSE: 601328), one of China’s largest lenders by assets,abercrombie paris, fell 0.53 percent to its closing at 7.46 yuan. This was despite the bank report that net profits rose 81 percent, boosted by strong growth in net interest income and a rapid growth of fee-based businesses. The chairman Jiang Chaoliang said in Shanghai that the 80-percent growth in net profit is “unprecedented,” and the bank does not expect the same rate growth to repeat in the near future.
New attention will be paid to less developed areas in China’s mid-west and northwest – regions that used to be industrial areas. Favorable tax policies are expected, as is new infrastructure, which will be built to facilitate commerce. As a result of the NDRC’s announcement,sac longchamp, Xi’An Tourism (SHSE 000610) gained 5.53 percent to close at 4.2 yuan,christian louboutin, and Tibet Travel (SHSE: 600749) climbed to 4.3 yuan,louboutin, up 2.63 percent.
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