Thanks to the good performance of energy and mining stocks, three European stock market indexes increased by between 1% and 1.3%. Stocks on the American market responded differently. Financial stocks, which have significant influence on the index, lost between 0.5% and 2% due to a speech by President George W. Bush. Oil stocks continued an upward trend and Alcoa was up more than 3%. The Dow Jones Industrial Average Index reached a high of 13136 and closed at 13028, up 41 points. Amid a skid in computer stocks, NASDAQ closed at 2516, down 13 points. Asian stock markets were weak on the morning of 20 May.

As a result of the Sichuan earthquake, 34,000 people have died, nearly 30,000 are still missing and 245,000 people have been injured. Official estimates show that direct economic losses for Sichuan Province may reach RMB 67 bln, accounting for 0.27% of the GDP of the country and 6.38% of the GDP of Sichuan Province in 2007.

The Shenzhen and the Shanghai Stock markets, after losing 0.3% and 0.9% respectively on 19 May, rebounded slightly on the morning of 20 May 2008. As of the time of this article, the Shanghai Stock Exchange composite index was at 3624, up 0.5%, and the Shenzhen component index was at 13208, up 0.1%.The Heng Seng Index was quoted at 25484, down 258 points, with a turnover volume of RMB 10.5 bln.

Blue chips made common slides. Stocks of core real estate and rental companies faced the heaviest selling pressure. Sino Land Company Limited (0083) was down 4.2% to HKD 20.3 per share. Three real estate stocks also suffered losses ranging between 1.5% and 2.2%. New World Development Company Limited (0017) was down 3.6% to HKD 19.24 per share. In addition, China Mobile Limited (0941) was down 0.1% to HKD 133.2 per share, and HSBC Holdings PLC (0005) was down 0.4% to HKD 135.2 per share.

China Shenhua Energy Company Limited (1088) continued its upward trend due to a hike in the price of coal and good ratings by large investment banks. The stock was up 1.2% in the morning to HKD 36.8 per share.

Source: www.aastocks.com

Date: 20 May 2008

CN01/MZ/BT/KM