China’s Shanghai Composite Index posted the biggest intraday surge since March 2009 on volumes 76 percent above the 30-day average, before paring gains as the exchange investigated the spike.
About 9.7 billion shares of Shanghai Composite companies changed hands as of 1:07 p.m. local time, versus 5.6 billion at the same time yesterday, data compiled by Bloomberg show. The gauge jumped from a loss to a gain of 5.6 percent in two minutes before paring its advance to 1.7 percent.
The Shanghai bourse said its operations are normal, according to a statement posted to its official microblog. There was no news to spur such a rally in the market, said Gerry Alfonso at Shenyin & Wanguo Securities Co.
“Such a movement won’t help to boost market confidence,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “Most investors would view such a sudden spike in a market with very poor sentiment as irrational and illogical.”
The Shanghai bourse is looking into the jump, said a technical services official at the exchange, who declined to be identified because of its rules.
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