Shanghai index rises for the first time in four days

SHANGHAI'S key stock market increased for the first time in four days today after new restrictions on share sales sparked optimism the government will take more steps to support the world's second-worst performing stock market this year.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, increased 0.72 percent, or 22.31 points, to 3,116.98 at 3pm. It surged 6.68 percent when the market opened at 9:30am today.

The index, which saw a slide of 11.4 percent last week, has dropped nearly half from its peak of 6,092.06 points on October 16, making it the second-worst performer in the world after Vietnam, on concern government measures to tame inflation will hurt profits and the supply of previously locked-up shares would exceed demand.

But losers in the Shanghai market outnumbered gainers 418 to 415, while 21 were unchanged.

The Shenzhen Composite Index, which covers the mainland's smaller stock market, was down 0.96 percent, or 8.91 points, to 921.72.

The Shanghai A-share Index was up 23.33 points or 0.72 percent to 3,270.77 on turnover of 79.2 billion yuan, but the Shenzhen A-share Index fell 10.02 points or 1.03 percent to 966.16 on turnover of 35.8 billion yuan.

(Agencies)