Jidong, Dongfang Lead China’s Cement, Equipment Stocks Higher
Tangshan Jidong Cement Co. (000401) and Dongfang Electric Corp. (600875) led cement and equipment producers higher in China trading as investors bought shares of companies set to benefit as the government’s economic stimulus plan boosts demand.
Jidong gained in Shenzhen by the daily 10 percent limit to 13.97 yuan, the highest in more than eight months, as of the 11:30 a.m. break. Dongfang Electric also gained by 10 percent in Shanghai to 36.18 yuan, the highest price since May 19.
China, the world’s third-largest economy, plans to spend 4 trillion yuan ($585 billion) in two years on infrastructure and other public works to sustain demand. The stimulus will help industries such as construction materials and equipment counter weak exports as the recession deepens in overseas economies.
“Investors are playing the domestic sectors,” said Stephen Wang, a Shanghai-based analyst at KGI Securities Co. Trade “continues to go down, so that means overseas demand is still quite weak.”
Huaxin Cement Co. (600801), the Chinese affiliate of Holcim Ltd., gained 10 percent in Shanghai to 22.69 yuan, the highest price since June 6. Anhui Conch Cement Co. (600585), China’s biggest producer, jumped as much as 10 percent and traded at 37.30 yuan, the highest since July 31. The Shanghai Composite Index gained as much as 1.7 percent.
Changsha Zoomlion Heavy Industries Science and Technology Development Co., China’s second-biggest maker of concrete pumps, rose as much as 8.4 percent in Shenzhen and traded at 19.78 yuan, the highest since April 7. Xuzhou Construction Machinery Science & Technology Co. (000425), the listed unit of the country’s biggest construction-equipment maker, gained as much as 7.1 percent and last traded at 24.30 yuan.
January traffic at China’s sea ports fell 7.4 percent and container volume plunged 15 percent, the Shanghai Securities News said on Feb. 17, citing preliminary data from the Ministry of Communications.
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