Money
China's stocks rebound; healthcare, consumer companies advance
(Agencies)
Updated: 2010-04-21 17:06
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China's stocks rose for the first time in five days as healthcare and consumer companies rallied on the prospect they will benefit from uncertainty over government measures to cool asset bubbles.
Guangzhou Pharmaceutical Co added 3.6 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.
"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 Shanghai Composite Index rose 30.64, or 1 percent, to 3,010.18 as of 1:16 pm local time, snapping a four-day, 5.9 percent decline. The CSI 300 Index gained 1.2 percent to 3,210.70. Futures on the CSI 300 expiring in May, the most active contract, added 0.6 percent to 3,234.6.
The Shanghai index has dropped 8.1 percent this year, the world's third-worst performer, on concern growth will slow after the government unwound monetary stimulus and announced measures to damp property prices.
Policy Beneficiaries
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Ulrich joins Shenyin & Wanguo Securities Co and China International Capital Crop in recommending buying consumer- related stocks and avoiding financial companies.
Guangzhou Pharmaceutical advanced 3.6 percent to 13.63 yuan. Dashang Group Co surged 10 percent to 48.99 yuan. Beijing Wangfujing Department Store (Group) Co gained 5.1 percent to 36.64 yuan. Tianjin Tasly Pharmaceutical Co rose 3.3 percent to 29.70 yuan.
Measures tracking utilities and healthcare stocks climbed more than 2 percent today, the biggest gainers among the CSI 300's 10 industry groups.
