Market rallies most this month

10:05, April 22, 2010      

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China's stocks rallied the most this month as healthcare and consumer-related companies gained on the prospect they will benefit from uncertainty over government measures to cool asset bubbles.

Guangzhou Pharmaceutical Co added 4.5 percent and retailer Dashang Group Co jumped the 10 percent daily limit. Huaneng Power International Inc led gains for power suppliers after reporting higher profit. Gemdale Corp paced a rebound by property stocks after investor Mark Mobius said China's demand for housing will withstand government bank lending curbs.

"Small and medium cap stocks like drugmakers and retailers are the best place to shield from policy risks," said Zheng Tuo, president of Shanghai Good Hope Equity Investment Management Co.

"The impact of the crackdown on the property market won't be catastrophic because the government may ease off if there's a big decline in property prices."

The Shanghai Composite Index rose 53.75, or 1.8 percent, to close at 3033.28, the biggest advance since March 29 and snapping a four-day, 5.9 percent decline.

The CSI 300 Index gained 2 percent to 3236.68. Futures on the CSI 300 expiring in May, the most active contract, added 1.6 percent to 3267.2.

"Investor sentiment toward the banking, property and building materials sectors has turned significantly negative, while consumption, healthcare and new economy sectors are seen as potential beneficiaries of policy shifts," Jing Ulrich, chairwoman of China equities and commodities at JPMorgan Chase & Co, said in a report.

Measures tracking consumer-related stocks and utilities climbed at least 2.7 percent on Wednesday, the biggest gainers among the CSI 300's 10 industry groups.

Source:China Daily

(Editor:黄蓓蓓)

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