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Coal mines, developers drag down Shanghai index
By Hu Xiaocen |
June 20, 2012, Wednesday
|
Print Edition
Print Edition
SHANGHAI shares traded lower on weak market sentiment today as coal mines and property developers dragged down the Shanghai Composite Index by 0.34 percent to close at 2,292.88 points.
"The government took more initiatives to stabilize the economy. The China Banking Regulatory Commission recently called for expanding credit to spur economy, especially in trade financing and selected railway and other infrastructure projects," Basing Investment Co said in a report today.
"The market will gradually touch the bottom and rebound on accumulated effects of lowered bank reserve requirement, reduced interest rates and major construction projects," it said.
Founder Securities said the coal industry was hard hit as the country's economy slowed. Manufacturing activity entered a downturn spiral this year. Electricity demand stalled, while power supply fell year-on-year in April and May.
Shares of coal producers and thermal power suppliers fell on rising inventory levels and falling prices. Zhengzhou Coal Industry & Electric Power Co shed 0.7 percent to 8.73 yuan. Gansu Jingyuan Coal Industry and Electricity Power Co plunged 2.3 percent to 17.3 yuan. Pingdingshan Tianan Coal Mining Co lost 0.6 percent to 10.6 yuan.
The National Council for Social Security Fund recently opened eight stock trading accounts in Shanghai. Many analysts said it's a sign of "bottom-out," and called for investors to increase their holdings. But Xiangcai Securities disagreed, saying it is meaningless to calculate when the market would hit the bottom.
Property developers tumbled after the Ministry of Housing and Urban-Rural Development reiterated the government resolves to control property prices. Poly Real Estate Group Co, the nation's second biggest developer, and Shanghai Xinmei Real Estate Co both slumped 1.6 percent to close at 11.54 yuan and 6.69 yuan. Shanghai New Huangpu Real Estate Co shed 0.7 percent to 9.05 yuan.
"The government took more initiatives to stabilize the economy. The China Banking Regulatory Commission recently called for expanding credit to spur economy, especially in trade financing and selected railway and other infrastructure projects," Basing Investment Co said in a report today.
"The market will gradually touch the bottom and rebound on accumulated effects of lowered bank reserve requirement, reduced interest rates and major construction projects," it said.
Founder Securities said the coal industry was hard hit as the country's economy slowed. Manufacturing activity entered a downturn spiral this year. Electricity demand stalled, while power supply fell year-on-year in April and May.
Shares of coal producers and thermal power suppliers fell on rising inventory levels and falling prices. Zhengzhou Coal Industry & Electric Power Co shed 0.7 percent to 8.73 yuan. Gansu Jingyuan Coal Industry and Electricity Power Co plunged 2.3 percent to 17.3 yuan. Pingdingshan Tianan Coal Mining Co lost 0.6 percent to 10.6 yuan.
The National Council for Social Security Fund recently opened eight stock trading accounts in Shanghai. Many analysts said it's a sign of "bottom-out," and called for investors to increase their holdings. But Xiangcai Securities disagreed, saying it is meaningless to calculate when the market would hit the bottom.
Property developers tumbled after the Ministry of Housing and Urban-Rural Development reiterated the government resolves to control property prices. Poly Real Estate Group Co, the nation's second biggest developer, and Shanghai Xinmei Real Estate Co both slumped 1.6 percent to close at 11.54 yuan and 6.69 yuan. Shanghai New Huangpu Real Estate Co shed 0.7 percent to 9.05 yuan.
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