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Investors cautious over economic data
By Lydia Chen |
September 9, 2011, Friday
|
Print Edition
Print Edition
SHARES in Shanghai fell yesterday as investors sat on the sidelines worried that China's economic data, which are due today, may turn worse than expected.
The Shanghai Composite Index, which has tumbled 11 percent so far this year, ended 0.7 percent lower at 2,498.94 points.
The thin trading of 60 billion yuan (US$9.39 billion) yesterday, a drop from Wednesday's 61.95 billion yuan, indicated that investors were reluctant to trade and were cautious ahead of a three-day holiday for the Mid-Autumn Festival from tomorrow, analysts at Chengdu-based Basing Investment Co said.
China is also due to release its August inflation data today. Most economists forecast August's inflation may fall from July but to remain above 6 percent. The Consumer Price Index, a broad gauge of inflation, rose 6.5 percent, the most in 37 months, in July.
Cement makers, which have already slumped for several trading days on concerns that slowing demand will hurt prices, were again the biggest drag yesterday.
Anhui Conch Cement Co, the country's largest cement producer, lost 2.6 percent to 18.62 yuan. Huaxin Cement Co shed 4 percent to 19.20 yuan.
There has so far not been a sharp recovery in demand for construction materials in September, the traditional peak season for the industry, and this may further soften investor confidence in related listed firms, said a note by Huatai United Securities Co.
Cement shares have dropped an average of nearly 30 percent since July, against an average gain of 50 percent in the first quarter of this year, said Yin Zhongli, vice director of the financial research department under the Chinese Academy of Social Sciences.
The decline among cement makers and shrinking demand for the commodity signaled that expansion in China's real estate industry is slowing, Yin said yesterday.
This slowdown will likely affect steel, construction material, and home appliance companies, according to Yin.
The Shanghai Composite Index, which has tumbled 11 percent so far this year, ended 0.7 percent lower at 2,498.94 points.
The thin trading of 60 billion yuan (US$9.39 billion) yesterday, a drop from Wednesday's 61.95 billion yuan, indicated that investors were reluctant to trade and were cautious ahead of a three-day holiday for the Mid-Autumn Festival from tomorrow, analysts at Chengdu-based Basing Investment Co said.
China is also due to release its August inflation data today. Most economists forecast August's inflation may fall from July but to remain above 6 percent. The Consumer Price Index, a broad gauge of inflation, rose 6.5 percent, the most in 37 months, in July.
Cement makers, which have already slumped for several trading days on concerns that slowing demand will hurt prices, were again the biggest drag yesterday.
Anhui Conch Cement Co, the country's largest cement producer, lost 2.6 percent to 18.62 yuan. Huaxin Cement Co shed 4 percent to 19.20 yuan.
There has so far not been a sharp recovery in demand for construction materials in September, the traditional peak season for the industry, and this may further soften investor confidence in related listed firms, said a note by Huatai United Securities Co.
Cement shares have dropped an average of nearly 30 percent since July, against an average gain of 50 percent in the first quarter of this year, said Yin Zhongli, vice director of the financial research department under the Chinese Academy of Social Sciences.
The decline among cement makers and shrinking demand for the commodity signaled that expansion in China's real estate industry is slowing, Yin said yesterday.
This slowdown will likely affect steel, construction material, and home appliance companies, according to Yin.
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