Drug firms lead benchmark index to lose most in 3 weeks
By Feng Jianmin and Pan Xiaoyi |
June 19, 2010, Saturday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday fell the most in three weeks, led by drug makers as institutional investors were concerned that the central government may tighten measures to control medicine prices.
The Shanghai Composite Index tumbled 1.84 percent, or 47.02 points, to close at 2,513.22, the biggest decline since May 31. Turnover rose to 72.8 billion yuan (US$10.7 billion) from 61.7 billion yuan on Thursday.
The gauge lost 2.2 percent during the shortened week because of the three-day Dragon Boat Festival break.
The National Development and Reform Commission, China's top economic planner, has said it is drafting guidelines to curb drug prices.
"Drug makers, which had outperformed the markets recently, lost previous gains due to pending policies, which then triggered a broad sell-off," said Jiang Haiyu, an analyst at S&E Brokerage Co. "It showed investors are quite sensitive and reduced holdings on any slight negative news."
Harbin Pharmaceutical Group Co shed 5.8 percent to 19.06 yuan, Guangzhou Baiyunshan Pharmaceutical Co dived by the 10 percent daily cap to 11.93 yuan, and Beijing Tongrentang Co lost 5.4 percent to 24.49 yuan.
Steel mills also declined. Baoshan Iron and Steel Co fell 0.8 percent to 6.02 yuan.
Amid the gloom there was a golden shine as gold miners sparkled because bullion prices for August delivery hit a record US$1,248.7 in New York. Zhongjin Gold Corp gained 0.7 percent to 57.39 yuan, and Shandong Gold Mining added 0.6 percent to 39.66 yuan.
The Shanghai Composite Index tumbled 1.84 percent, or 47.02 points, to close at 2,513.22, the biggest decline since May 31. Turnover rose to 72.8 billion yuan (US$10.7 billion) from 61.7 billion yuan on Thursday.
The gauge lost 2.2 percent during the shortened week because of the three-day Dragon Boat Festival break.
The National Development and Reform Commission, China's top economic planner, has said it is drafting guidelines to curb drug prices.
"Drug makers, which had outperformed the markets recently, lost previous gains due to pending policies, which then triggered a broad sell-off," said Jiang Haiyu, an analyst at S&E Brokerage Co. "It showed investors are quite sensitive and reduced holdings on any slight negative news."
Harbin Pharmaceutical Group Co shed 5.8 percent to 19.06 yuan, Guangzhou Baiyunshan Pharmaceutical Co dived by the 10 percent daily cap to 11.93 yuan, and Beijing Tongrentang Co lost 5.4 percent to 24.49 yuan.
Steel mills also declined. Baoshan Iron and Steel Co fell 0.8 percent to 6.02 yuan.
Amid the gloom there was a golden shine as gold miners sparkled because bullion prices for August delivery hit a record US$1,248.7 in New York. Zhongjin Gold Corp gained 0.7 percent to 57.39 yuan, and Shandong Gold Mining added 0.6 percent to 39.66 yuan.
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