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Cement manufacturers lead Chinese markets higher

Post Time:Mar 03,2009Classify:Industry NewsView:286

Mainland China’s stocks rose, led by cement shares, after officials said cement production will increase 100m tonnes this year. The Shanghai Comprehensive Index climbed 0.51 percent to 2093.45.

Hong Kong stocks slumped, led by exporters and material companies, as prices of commodities kept falling. The Hang Seng Index lost 3.86 percent to 12317.46.

Changchun FAWAY Automobile Components Co (SH:600742) surged to the 10 percent trading cap. The ‘automobiles to rural families’ campaign began yesterday, but details of the measures were still unavailable.

Melcolot Ltd (HK:08198), a lottery management system provider, surged 39.39 percent after CCTV reported that people are more likely to play the lottery in difficult times.

Big Media Group Limited (HK:08167), a producer and distributor of Chinese language films, dropped 31.40 percent.

Cement stocks up on weekend of good news

Mainland cement stocks rose 9 percent led by Gansu Qilianshan Cement Group Co.(SH:600720), Tangshan Jidong Cement Co.(SZ:000401) and Taihang Hebei Taihang Cement Co.(SH:600553), following the 2009 China Cement Market Forum, over the week-end.

At the forum, National Development and Reform Commission director Zhang Hanya said that China's cement consumption will probably grow by more than 100 million tons in 2009. In 2008, growth was less than 40 million tons.

As part of its 4-trillion-yuan ($586 billion) stimulus package the Chinese government has annouced government-led investment projects in transportation infrastructure and logistics and warehousing.

At the forum, China National Building Materials (HK:03323), announced its plan to create a Northern Concrete group. The plan had been on the table before but was dropped when negotiations with Sinoma Jidong Cement ran aground.

In December, China National Building Materials, Inner Mongolia, Ulan Cement and Jilin Jingang Cement entered into substantive talks. But in order for Northern Cement to achieve the desired production capacity of 150 million tons, Qilianshan would need to be onboard.

On the back of the news, Qilianshan hit the 10 percent trading roof by 10:25, followed by Sinoma Jidong Cement at 13:20 and later 10 more cement stocks.

In Hong Kong, China National Building Materials rose 5 percent.

In London West China Cement (AIM:WCC) rose 3.8 percent in morning trading.

Source: proactiveinvestors.co.ukAuthor: shangyi

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