Environmental protection shares buoy market

Chinese mainland stocks edged up slightly on Thursday on strength in environmental protection shares after Chinese Premier Li Keqiang voiced support the previous day for spending more to fight pollution.

The benchmark Shanghai Composite Index added 0.36 percent to 3,152.19 points, while the Shenzhen Component Index closed 0.24 percent higher at 10,229.19 points.

The blue- chip CSI 300 Index rose 0.04 percent to 3,446.72 points. The ChiNext, China’s NASDAQ- style board, jumped 1.23 percent to 1,842.92 points.

Environmental protection stocks were the biggest winners of the day, while the auto and defense sectors led the decliners.

Shares of several environmental protection companies, such as Fujian Longking Co, have surged by the daily trading limit of 10 percent following Li’s comment on Wednesday that more money should be spent on dealing with air pollution.

Stock analysts had different opinions about the market’s prospects in the near term. Jufeng Investment Information analysts noted that the benchmark index had room to rise to 3,200 points.

Analysts from Zhongzheng Investment argued that the major stock indexes have been edging down since early April, and a prolonged slumping trend is unlikely.

But they noted that it will still take some time for market sentiment to fully turn around.