| Chinese shares post modest gains Tuesday |
SHANGHAI, Nov. 21 (AP) -- Chinese shares rose slightly on Tuesday to post another new five-year high for the country's main index, lifted by mixed gains in the banking sector and a further surge by the country's key refiner.
The key Shanghai Composite Index nosed upward 1 percent to 2,037.55, its highest closing level since it settled at 2,065.72 on July 27, 2001.
The index has been posting new five-year highs in each of the last five sessions. Analysts said they expected further rises over the next week as smaller stocks catch up with the recent big jumps taken by large-capitalization stocks.
"But the bullish run may end around the end of this month, as institutions will likely take profit from big caps," said Yu Yang, an analyst at Guotai Junan Securities.
The Shenzhen Composite Index gained 0.7 percent to close at 458.78.
Shenzhen Development Bank surged by the daily limit of 10 percent, to 11.83 yuan on expectations the bank may carry out its nontradable-share-reform plan soon.
Such a move would see holders of tradable shares offered cash, shares or warrants in return for approving share reform plans. Securities officials have repeatedly said nontradable-share should basically be completed by the end of this year.
Hua Xia Bank also rose 2.6 percent to 5.83 yuan, while other banking stocks appeared to run out of steam after a recent gains.
China Merchants Bank, which jumped 6.6 percent on Monday, slipped 0.3 percent to 13.46 yuan, while Bank of China fell 0.5 percent to 3.68 percent after rising 1.4 percent Monday.
Banking stocks have been boosted by the strengthening of China's currency, the yuan, against the U.S. dollar, increasing the value of Chinese banks' yuan-denominated assets.
"Banks should have a big say in the market's direction in coming days," said Qian Qimin, an analyst at Shenyin & Wanguo Securities. "Personally I think they are still fine investments as the yuan retains its long-term uptrend."
Meanwhile, China Petroleum & Chemical, Asia's largest refiner by capacity, surged 4.2 percent to 8.20 yuan, extending a 14 percent gain over the previous two sessions.
The refiner's rise has been driven by expectations that crude oil prices will remain under pressure
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