
September 25, 2010 (Chinavestor) – China and most of Asia saw their trading weeks shortened by holiday festivities and that led to the Shanghai Composite (SHA:000001) finishing the week basically flat and the Hang Seng Index (INDEXHANGSENG:.HSI) notched a small gain, but the real fireworks occurred in the U.S. The Dow Jones Industrial Average (INDEXDJX:.DJI) surged 2.4% on the week and remains on pace for its best September performance since 1939. Impressive is the fact that stocks continue to rally while gold made new all-time highs on a daily basis, briefly topping $1,300 an ounce on Friday. Twenty seven out of thirty components of the Dow Jones Industrial Average (INDEXDJX:.DJI) advanced with Alcoa (NYSE:AA) taking a lead with a 9.2 percent surge.
Hong Kong traders got clues from the U.S. sending airliners and energy stocks higher but power companies fell following a large ten perce surge a week earlier. All listed large cap power generators fell; Huadian Power (HKG:1071), Datang Power (HKG:0991) and Huaneng Power (HKG:0902) tumbled as investors took profits following the big surge last week. Citi reported talks between regulators and representatives of power companies about possible tariffs increase. A report that profitability of the airline industry is going to exceed that of last year sent representatives of the sector surging. China Southern Airlines (HKG:1055), the largest Chinese carrier, rose 6.4 percent followed by Air China (HKG:0753), China's flagship carrier, and China Eastern Airlines (HKG:0670). TravelSky Technology Limited (HKG:0696), an IT firm providing services for the aviation industry, surged 7.5 percent.
Trading was halted for most of the week in Shanghai, where metals and construction materials fell on a property squeeze concern. Wen Jiabao, Premier of China, hinted the introduction of additional measures to tame the real estate sector unless prices fall. Investors rotated out of the sector and poured money into consumer stocks such as autos and insurance companies. SAIC Motor (SHA:60010), the largest Chinese auto maker, rose 4.9 percent for the week followed by Ping An Insurance (SHA:601318) and China Pacific Insurance (SHA:601601). But Jinduicheng Molybdenum Co., Ltd. (SHA:601958) and Jiangxi Copper (SHA:600362), the largest producer of the metal, tumbled 7.7 percent and 7.5 percent, respectively.
Key NYSe and NASDAQ listed stocks of the week are; China Real Estate Information (Nasdaq:CRIC), Baidu.com (NASDAQ:BIDU) and New Oriental Education & Tech. Group (NYSE:DU) among large caps.
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