Commodity producers drive down stocks
Print Edition
CHINA’S stocks yesterday fell for the first time in three days, led by commodity producers, amid speculation of further declines in raw material prices.
The Shanghai Composite Index ended the day down 0.8 percent at 2,821.67 points.
Jiangxi Copper Co fell 1.2 percent to 12.88 yuan (US$1.97), while Yanzhou Coal Mining Co lost 3.1 percent to 8.99 yuan.
Raw materials have been on a tumultuous ride this year after tentative signs of a demand revival reignited speculation. The frenzy led to a clampdown from regulators and exchanges, weakening prices once more, including for iron ore and steel.
“The game is over for speculation on ferrous metals,” Steve Wang, chief China economist at Reorient Financial Markets, was quoted as saying by Bloomberg News.
“The official stance is clearly against speculation as state media and regulators seek to stabilize prices. Ferrous metal prices are back where the rally started in February,” he said.
Market sentiment was weak, with trading volume 33 percent below the 30-day average.
Yang Delong, chief manager at First Seafront Fund Management, said the economic conditions don’t justify a rebound, while investors’ low appetite for risk reflected the lack of government support.
“Bulls and bears are staying away from the market, leaving only speculators,” he said, adding that he felt the downward trend would remain unchanged until the end of June.
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