SHANGHAI, Nov 24 (Reuters) - China's blue-chip CSI300 Index
rose for the fourth straight day on Thursday as investors chased
cyclical stocks, but the broader market struggled for traction
with growth stocks under persistent selling pressure.
The CSI300 index rose 0.4 percent to 3,488.74
points, while the Shanghai Composite Index was flat at
3,241.74 points. Shenzhen's start-up board ChiNext
lost 0.9 percent.
China's blue-chips have outperformed growth stocks over the
past month, reflecting investors' renewed inclination toward
cyclical sectors such as financials and commodities amid signs
that the economy is stabilising.
"There's an obvious rotation into cyclical plays and out of
growth stocks," said Chang Chengwei, analyst at Hengtai Futures
Recent strength in commodity prices - which in turn has lit
a fire under raw material stocks - is the result of the
government over-doing its efforts to reduce excess capacity,
resulting in supply shortages, Chang said.
Shares in China's major base metal producers rallied across
the board as futures prices of copper, zinc and nickel jumped.
Also noteworthy was buying by China's deep-pocketed
institutional investors in industry-leading companies which are
seen as having cheaper valuations.
That has boosted appetite for index heavyweights such as
food provider Inner Mongolia Yili, developer China
Merchants Shekou and home appliances maker Gree
Most sectors gained ground, led by consumer and
healthcare stocks, while industry and
energy stocks took a breather.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Kim