Shanghai's key stock index closed higher today thanks to a rise among oil-related heavyweights in the market.

The Shanghai Composite Index added 0.94 percent, or 31.92 points, to 3,433.45 at 3pm. The index is comprised of yuan-denominated A shares and hard-currency B shares.

Gainers in the Shanghai market outnumbered losers 445 to 318 while 24 were unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 0.32 percent, or 3.30 points, to 1,036.99.

Oil-related shares continued yesterday's rally today after a slump in oil prices eased concern that higher fuel costs will dent earnings at refiners.

Sinopec, the nation's biggest oil refiner, advanced 3.13 percent to 13.53 yuan (US$1.95). PetroChina added 1.13 percent to 17.92 yuan.

Oil yesterday slumped 3.4 percent to settle at US$126.62 a barrel in New York, its lowest close since May 16. It was the biggest drop since March 31. Futures reached a record US$135.09 on May 22. Prices have more than doubled over the past year.

Insurers rallied today even though the nation's industry regulator said the industry has paid a total of 135 million yuan in claims related to the May 12 earthquake, the country's deadliest disaster in three decades.

China Life Insurance Co, the country's biggest insurer, rose 4.21 percent to 30.21 yuan while Ping An Insurance jumped 4.43 percent to 56.30 yuan.

Of the claims, life insurance made up 21.3 million yuan and property accounted for 42 million yuan, the China Insurance Regulatory Commission said in a statement posted on its Website today, citing figures as of May 28.

China Life will pay a total of 196.4 million yuan in quake-related claims, the Securities Times reported, citing Vice President Liu Yingqi. The firm has so far paid 33.2 million yuan, according to the report.

Qingdao Haier Co, the air-conditioner and refrigerator unit of the country's biggest appliance manufacturer, added 1.93 percent to 12.15 yuan. The company said it hasn't been involved in any plan to acquire the consumer-appliances division of General Electric Co.

But on the other side, Daqin Railway Co, the operator of China's biggest coal transport network, slumped 5.24 percent to 15.01 yuan.

The company said it plans to raise as much as 15 billion yuan selling bonds to buy train cars and locomotives. It plans to buy 4.4 billion yuan worth of train cars to transport cargo.

(Shanghai Daily May 30, 2008)