Cement producers drive Chinese share market higher

Cement producers drive Chinese share market higher
Published: 14 October 2010

Chinese stocks rose Wednesday led by cement makers, which gained on news of a government plan to boost sales of construction materials in rural areas.

The benchmark Shanghai Composite Index edged 0.7 per cent, or 19.95 points, higher to close at 2,861.36. The Shenzhen Component Index gained 1.86 per cent, or 229.72 points, to end at 12,603.

Combined turnover shrank to CNY300.98bn(US$45.12bn) from CNY363.4bn the previous trading day.

Gainers outnumbered losers 507 to 359 in Shanghai and 604 to 465 in Shenzhen.

Cement producers jumped across the board after six government ministries issued a joint statement announcing the nation’s launch of a pilot program to promote sales of construction materials -- especially cement -- in the country’s vast rural areas.

Anhui Conch Cement Co., China’s largest cement maker, rose 3.99 per cent to CNY25.78 per share while Gansu Qilianshan Cement Group Co. climbed 3.38 per cent to CNY18.97 per share.