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China shares pick up from six-year low
(Agencies)
Updated: 2005-05-18 08:41

China's shares inched up 0.4 percent Tuesday, bouncing off the previous session's six-year closing low, as large caps such as Huadian Power International Corp. Ltd. rose amid bargain hunting.

The benchmark Shanghai composite index, which had chalked up a fresh six-year low of 1,095.468 points by Monday's close, closed higher at 1,099.640 points.

Big chips, which had born the brunt of heavy slumps in recent sessions, perked up Tuesday.

Huadian Power, China's third-largest listed electricity producer, jumped 3.4 percent to 2.74 yuan (US$0.33) after having slumped 17 percent since last week.

Wuhan Iron and Steel Co. Ltd., the country's number-three steelmaker, ended up 0.9 percent at 3.41 yuan. It had lost more than 2 percent a day earlier.

The benchmark index is down some 5 percent since the Central Government revived a plan to offload massive government holdings in listed firms in late April.

"The market could manage a small rally in the latter part of this week, but it will still be obsessed with lingering bearishness," said analyst Liu Bo at Founder Securities.

Sinopec Corp., Asia's top refiner, dipped 2.8 percent to 3.89 yuan after outperforming the index last week.

China's index has dived 13 percent so far in 2005, extending a 15 percent fall last year.

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