Index declines as investors lock in profits
By Ye Zhen |
January 23, 2013, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks dipped yesterday following two days of rises as investors locked in profits after market valuation hit an eight-month high.
The Shanghai Composite Index lost 0.56 percent to 2,315.14 points.
"The temptation to take some money off the table is rising with the index gaining," CITIC Securities said in a report. Although upbeat about the market outlook, the broker expects the index to be volatile on profit-taking before rising.
The index has surged 18.8 percent since falling to a four-year low on December 3, with its price-to-earnings ratio rising to 12.9 times, the highest since May, according to data compiled by Bloomberg News.
Xia Yang, an analyst with UBS Securities, said the stock market valuation has recovered to a rational level and listed companies should improve their profitability.
Zijin Mining Group Co, China's largest gold producer, lost 1.3 percent to 3.81 yuan after Goldman Sachs forecast the international gold price will fall in the second half of this year as the world economy picks up and will drop to US$1,200 an ounce in the next five years.
Shandong Gold Mining Co fell 1.6 percent to 37.81 yuan. Zhongjin Gold Corp shed 1.7 percent to 16.43 yuan.
The Shanghai Composite Index lost 0.56 percent to 2,315.14 points.
"The temptation to take some money off the table is rising with the index gaining," CITIC Securities said in a report. Although upbeat about the market outlook, the broker expects the index to be volatile on profit-taking before rising.
The index has surged 18.8 percent since falling to a four-year low on December 3, with its price-to-earnings ratio rising to 12.9 times, the highest since May, according to data compiled by Bloomberg News.
Xia Yang, an analyst with UBS Securities, said the stock market valuation has recovered to a rational level and listed companies should improve their profitability.
Zijin Mining Group Co, China's largest gold producer, lost 1.3 percent to 3.81 yuan after Goldman Sachs forecast the international gold price will fall in the second half of this year as the world economy picks up and will drop to US$1,200 an ounce in the next five years.
Shandong Gold Mining Co fell 1.6 percent to 37.81 yuan. Zhongjin Gold Corp shed 1.7 percent to 16.43 yuan.
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