Market welcomes 2009 on positive note at midday

Shanghai's key stock index started the new year on a positive note this morning, jumping more than 2 percent on the first trading day for 2009.

The market sentiment reflected anticipation of better economic conditions once macroeconomic policies announced at the end last year take effect.

The benchmark Shanghai Composite Index added 2.14 percent, or 39.04 points, to close at 1,859.85 points at 11:30am. Turnover was 23.5 billion yuan (US$3.44 billion).

The Shenzhen Composite Index, which tracks the smaller domestic market, was up 1.65 percent to close at 562.44 points.

Among the banks, Industrial Bank Co Ltd added 2.47 percent to 14.96 yuan, Industrial & Commercial Bank of China, the nation's biggest lender, gained 1.41 percent to 3.59 yuan and Bank of Communications hiked 4.43 percent to 4.95 yuan.

The market responded positively to the Minister of Industry and Information Technology's announcement on December 31 that it would issue licenses for phone companies to offer 3G services.

China United Telecommunications Corp, which controls the nation's second-largest cell phone operator, added 1.79 percent to 5.12 yuan. ZTE Corp, China's second-biggest phone-equipment maker, advanced 2.39 percent to 27.85 yuan.

SAIC Motor Co, China's largest auto maker, announced it had provided 25.9 billion won (US$19.6 million) to its Ssangyong Motor Co unit in South Korea. Its shares rose 2.61 percent to 5.50 yuan.

Yunnan Tin Co, the world's largest producer of the metal, surged 7.10 percent to 10.11 yuan after announcing it would store 6,000 tons of tin in response to the government's pledge to increase metal resources stocks.

China Southern Airlines Co., Asia's biggest carrier by passenger numbers, said it had made $6.3 million from fuel-hedging last year. Its shares edged up 0.63 percent to 3.21 yuan.