Steel and property raise index

Shanghai's key stock index ended slightly higher yesterday boosted by strong performance of steel makers and a rebound in the property sector.

The Shanghai Composite Index edged up 0.41 percent to close at 2,650.31. Turnover was 106.3 billion yuan (US$15.6 billion).

Steel makers rose on expectations construction of low-budget homes would quicken while overcapacity in the industry would ease.

Baoshan Iron and Steel Co gained 1.73 percent to 6.48 yuan, and Wuhan Steel and Iron Co climbed 3.18 percent to 4.87 yuan.

Also helping the index were the sterling financial results that companies have posted in the first half of the year. A total of 1,234 listed companies have reported an average 40 percent jump in net profits in the first six months, Securities Daily said yesterday.

But Qi Dapeng, an analyst at Xiangcai Securities, said the "strong performance of the blue chips will not last very long and market sentiment will stay flat as there is no sign of more stimulus measures in the near future."

Property firms gained. Gemdale Corp added 1.49 percent to 6.79 yuan and Poly Real Estate Co rose 2.27 percent to 12.59 yuan.