The Shanghai Composite Index, which tracks both yuan-denominated Class-A shares and hard-currency Class-B shares, inched up 0.06 percent to 1555.45.

The transaction value dropped to 11.26 billion yuan (US$1.36 billion) from 13.68 billion yuan the previous session. The A-Share Index rose 0.06 percent to 1628.70.

"Investors chased the high-tech stocks, which did not gain substantially from the previous rally (in the market), and prevented the broad market from moving into negative territory," said Wei Wei, an analyst with West China Securities Co Ltd. "On the other hand, investors dumped stocks which have risen to lock in profits, such as the banking and the auto stocks."

Wei predicted the composite index to trade in a narrow range.

Among the gainers, Shaanxi Precision Alloy Co Ltd rose 5.08 percent to 5.58 yuan and Baotou Tomorrow Technology Co Ltd was up 2.55 percent at 8.04 yuan.

Decliners included FAW Jinbei Automotive Co Ltd losing 2.73 percent to 8.56 yuan and Shanghai Pudong Development Bank off 2.14 percent to 13.25 yuan.

The Shanghai B-Share Index closed 0.48 percent higher at 117.05.

(Shanghai Daily May 20, 2003)