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 Co.
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 Electric.
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 Coghill)