Large-cap sharespurchase helps rebound.

(From Business Daily Update)

Author: China's shares on November 26 finished on higher ground, as buying in large-cap stocks such as top steelmaker Baosteel helped the market recoup the morning's losses. The benchmark Shanghai composite index, grouping hard-currency B shares for foreigners and yuan-denominated A shares, edged up 0.25 percent to 1,411.91 points after hovering around the key 1,400 point level. Baoshan Iron and Steel Co Ltd, the world's fourth most valuable steelmaker, was the day's most active counter, jumping 1.65 percent to 6.78 yuan (82 US cents). Baosteel has soared 64.6 percent since the start of the year on strong corporate prospects. The company has said it expects net profits to hold steady in 2004 after an estimated near-doubling this year due to China's economic boom. Shenzhen's shares rose 10.67 to 3,289.44. Hard currency B shares declined. Shanghai's B shares inched down 0.221 to 111.54. Shenzhen's B shares dipped 1.27 to 267.58. Index heavyweight China United Telecommunications Corp edged up 0.57 percent to 3.52 yuan (43 US cents), while Shanghai Electric Power Co Ltd rose 2.54 percent to 9.30 yuan (US$1.10). "The market consolidated mildly, while gains for bluechips helped ease profit-taking pressure," said analyst Yu Xiaoli of Haitong Securities. Over the past week, the Shanghai index has climbed about 7 percent in a rebound led by bargain-hunting among tech and drug counters, after sliding almost 20 percent since mid-April. Shandong Xinhua Pharmaceutical Co Ltd dropped 4.35 percent to 6.6 yuan (79 US cents), making it one of the top decliners after a round of profit-taking kicked in. Analysts gave mixed opinions on the market trend. "The market is expected to extend gains after a recent consolidation, with more funds pouring in," Yu said. ...