Key index sinks more than 1%
By Pan Xiaoyi |
May 21, 2010, Friday
|
Print Edition
Print Edition
STOCKS in Shanghai fell more than 1 percent yesterday to their lowest level in more than a year, following overnight drops in overseas markets.
The Shanghai Composite Index declined 1.23 percent, or 31.87 points, to 2,555.94, its lowest close since April 30, 2009. Turnover shrank to 71.9 billion yuan (US$10.6 billion) from 79.98 billion yuan on Wednesday.
The benchmark has lost 22 percent this year, Asia's worst performer, after surging 80 percent last year.
"The German government announced a ban on naked short selling, arousing market concerns that regulators will launch more measures to crack down on financial speculation, causing a broad sell-off in overseas markets," said Wen Lijun, a Nanjing Securities Co analyst. "This had a negative influence on domestic investor sentiment."
Gold producers led the declines after the bullion price fell. Zijin Mining, the nation's largest gold producer, fell 3.7 percent to 7.13 yuan. Zhongjin Gold Corp slid 5.9 percent to 56.39 yuan. Shandong Gold Corp dropped 4.5 percent to 37.81 yuan.
Drug makers also fell on the day. Jiangsu SOPO Chemical Co dived 7.1 percent to 8.06 yuan. China Meheco Corp withdrew 5.4 percent to 14.23 yuan while Kangmei Pharmaceutical Co lost 4.1 percent to 13.23 yuan.
"Investment banks and economists see fewer reasons for the central bank to raise interest rates in the first half, easing market concerns that China will phase out stimulus measures," said Wu Fei, an analyst from Dongwu Securities Co.
"There is no need to be too negative toward the market."
Bucking the downward trend, steel makers advanced.
Xinjiang Ba Yi Iron and Steel Co jumped 2.2 percent to 11.57 yuan. Baoshan Iron and Steel Co added 1.1 percent to 6.54 yuan and Angang Steel Co climbed 0.7 percent to 8.17 yuan.
The Shanghai Composite Index declined 1.23 percent, or 31.87 points, to 2,555.94, its lowest close since April 30, 2009. Turnover shrank to 71.9 billion yuan (US$10.6 billion) from 79.98 billion yuan on Wednesday.
The benchmark has lost 22 percent this year, Asia's worst performer, after surging 80 percent last year.
"The German government announced a ban on naked short selling, arousing market concerns that regulators will launch more measures to crack down on financial speculation, causing a broad sell-off in overseas markets," said Wen Lijun, a Nanjing Securities Co analyst. "This had a negative influence on domestic investor sentiment."
Gold producers led the declines after the bullion price fell. Zijin Mining, the nation's largest gold producer, fell 3.7 percent to 7.13 yuan. Zhongjin Gold Corp slid 5.9 percent to 56.39 yuan. Shandong Gold Corp dropped 4.5 percent to 37.81 yuan.
Drug makers also fell on the day. Jiangsu SOPO Chemical Co dived 7.1 percent to 8.06 yuan. China Meheco Corp withdrew 5.4 percent to 14.23 yuan while Kangmei Pharmaceutical Co lost 4.1 percent to 13.23 yuan.
"Investment banks and economists see fewer reasons for the central bank to raise interest rates in the first half, easing market concerns that China will phase out stimulus measures," said Wu Fei, an analyst from Dongwu Securities Co.
"There is no need to be too negative toward the market."
Bucking the downward trend, steel makers advanced.
Xinjiang Ba Yi Iron and Steel Co jumped 2.2 percent to 11.57 yuan. Baoshan Iron and Steel Co added 1.1 percent to 6.54 yuan and Angang Steel Co climbed 0.7 percent to 8.17 yuan.
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