Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
Analyst's advice sends stocks downward at midday
By Pan Xiaoyi |
February 18, 2009, Wednesday
|
Online Edition
Online Edition
SHANGHAI'S key stock index plunged nearly 3 percent in the morning session after an analyst advised investors to sell yuan-denominated Chinese shares because gains were not backed by fundamentals.
The Shanghai Composite Index tumbled 2.73 percent, or 63.23 points, to 2,256.21 points at 11:30am.
The Shenzhen Composite Index, which tracks the smaller domestic market, was down 1.93 percent, or 14.23 points, to 722.75 points.
While stocks may have "further room to run" before the announcement of various stimulus programs and the annual session of the National People's Congress next month, the rally may not be sustainable as "we do not believe it is supported by fundamentals," wrote Steven Sun, HSBC strategist, in a note yesterday.
Sun advised investors to sell stocks after the benchmark Shanghai Composite Index rose above 2,300 points.
The Shanghai benchmark has rallied 25 percent this year, the best-performing of 90 global stock gauges. The index closed at 2,319.44 yesterday.
Commodities plunged to their lowest level since June 2002. Crude oil fell as much as 8.2 percent, and copper declined the most in three months.
Jiangxi Copper Co, China's biggest producer of the metal, retreated 2.6 percent to 17.58 yuan.
PetroChina Co, the nation's biggest oil company, lost 3.21 percent to 11.44 yuan while China Petroleum & Chemical Corp, Asia's biggest oil refiner, slid 2.19 percent to 8.93 yuan.
Poly Real Estate Group Co, China's second-largest developer by market value said it plans to invest 21.5 billion yuan (US$3.1 billon) in property this year after profit jumped 50 percent last year. Separately, Poly said it may raise up to 8 billion yuan from a private placement of shares. The stock dropped 3.28 percent to 17.7 yuan.
Bucking the downward trend, machinery makers gained with analysts believing construction demand will increase following the Lunar New Year period as companies start work on new projects
Guangxi Liugong Machinery Co, a Chinese maker of construction equipment, rose 1.82 percent to 15.08 yuan. Sany Heavy Industry Co, which makes concrete pumps and road rollers, climbed 1.36 percent to 23.11 yuan.
Changsha Zoomlion Heavy Industry Science & Technology Development Co, which makes heavy construction equipment, gained 5.98 percent to 19.14 yuan.
The Shanghai Composite Index tumbled 2.73 percent, or 63.23 points, to 2,256.21 points at 11:30am.
The Shenzhen Composite Index, which tracks the smaller domestic market, was down 1.93 percent, or 14.23 points, to 722.75 points.
While stocks may have "further room to run" before the announcement of various stimulus programs and the annual session of the National People's Congress next month, the rally may not be sustainable as "we do not believe it is supported by fundamentals," wrote Steven Sun, HSBC strategist, in a note yesterday.
Sun advised investors to sell stocks after the benchmark Shanghai Composite Index rose above 2,300 points.
The Shanghai benchmark has rallied 25 percent this year, the best-performing of 90 global stock gauges. The index closed at 2,319.44 yesterday.
Commodities plunged to their lowest level since June 2002. Crude oil fell as much as 8.2 percent, and copper declined the most in three months.
Jiangxi Copper Co, China's biggest producer of the metal, retreated 2.6 percent to 17.58 yuan.
PetroChina Co, the nation's biggest oil company, lost 3.21 percent to 11.44 yuan while China Petroleum & Chemical Corp, Asia's biggest oil refiner, slid 2.19 percent to 8.93 yuan.
Poly Real Estate Group Co, China's second-largest developer by market value said it plans to invest 21.5 billion yuan (US$3.1 billon) in property this year after profit jumped 50 percent last year. Separately, Poly said it may raise up to 8 billion yuan from a private placement of shares. The stock dropped 3.28 percent to 17.7 yuan.
Bucking the downward trend, machinery makers gained with analysts believing construction demand will increase following the Lunar New Year period as companies start work on new projects
Guangxi Liugong Machinery Co, a Chinese maker of construction equipment, rose 1.82 percent to 15.08 yuan. Sany Heavy Industry Co, which makes concrete pumps and road rollers, climbed 1.36 percent to 23.11 yuan.
Changsha Zoomlion Heavy Industry Science & Technology Development Co, which makes heavy construction equipment, gained 5.98 percent to 19.14 yuan.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
