Index falls for 6th day as finance, coal shares hit
By Ye Zhen |
June 27, 2013, Thursday
|
Print Edition
Print Edition
SHANGHAI stocks declined yesterday for a sixth straight day as financial counters again suffered amid a liquidity squeeze while coal producers fell on falling coal price.
The Shanghai Composite Index shed 8.01 points, or 0.41 percent to 1,951.50.
The banking sector remained weak due to the credit squeeze even though the Chinese central bank said late Tuesday that it would adjust liquidity supply at an appropriate time to rein in abnormal fluctuations and stabilize the market.
China Minsheng Banking Corp lost 1.7 percent to 8.30 yuan. China Merchants Bank fell 2.4 percent to 10.66 yuan. The Bank of Communications shed 1.7 percent to 3.99 yuan.
"Although the regulators signaled that they will take steps to stabilize the market, the outlook won't improve without concrete measures," said Guosen Securities.
UBS Investment Research yesterday cut its forecast for the profit growth of listed Chinese financial firms from 11.6 percent to 10.3 percent, blaming higher borrowing costs, narrowing interest margins among lenders and slower loan growth.
Coal producers also dropped after data showed the Bohai-rim Steam-Coal Price Index, a gauge of steam coal price at six ports, fell for a second straight week.
China Shenhua Energy Co, the nation's biggest coal producer, dropped 3 percent to 16.99 yuan. Shanxi Lu'an Environmental Energy Development Co fell 2.4 percent to end at 12.05 yuan.
The Shanghai Composite Index shed 8.01 points, or 0.41 percent to 1,951.50.
The banking sector remained weak due to the credit squeeze even though the Chinese central bank said late Tuesday that it would adjust liquidity supply at an appropriate time to rein in abnormal fluctuations and stabilize the market.
China Minsheng Banking Corp lost 1.7 percent to 8.30 yuan. China Merchants Bank fell 2.4 percent to 10.66 yuan. The Bank of Communications shed 1.7 percent to 3.99 yuan.
"Although the regulators signaled that they will take steps to stabilize the market, the outlook won't improve without concrete measures," said Guosen Securities.
UBS Investment Research yesterday cut its forecast for the profit growth of listed Chinese financial firms from 11.6 percent to 10.3 percent, blaming higher borrowing costs, narrowing interest margins among lenders and slower loan growth.
Coal producers also dropped after data showed the Bohai-rim Steam-Coal Price Index, a gauge of steam coal price at six ports, fell for a second straight week.
China Shenhua Energy Co, the nation's biggest coal producer, dropped 3 percent to 16.99 yuan. Shanxi Lu'an Environmental Energy Development Co fell 2.4 percent to end at 12.05 yuan.
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