Key index slides over inflation concerns
By Feng Jianmin |
March 3, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI'S key stock index dipped amid inflation concerns after oil prices rallied due to the ongoing turmoil in the Middle East. Airlines dropped while gold miners gained.
The Shanghai Composite Index edged down 0.2 percent to 2,913.81. Turnover fell to 165 billion yuan (US$25 billion) from yesterday's 172 billion yuan.
Oil for April delivery gained as much as US$1.01, or 1 percent, to US$100.64 a barrel in electronic trading in New York on Tuesday over concerns uprisings in the Middle East will spread from Libya to Iran.
Analysts are concerned rising oil prices may speed up inflation and hobble the economic recovery, but they also said the current situation in the Middle East is not likely to result in an oil crisis.
"Oil demands in February and March are usually high, and the recent rally is the result of both demand and panic," said He Qingming, an analyst with Pingan Securities. "Oil prices are likely to go up, but not significantly."
Airlines led the declines yesterday. China Southern Airlines dropped 2.1 percent to 8.69 yuan. Air China sank 2 percent to 11.69 yuan.
Gold miners did well as gold for April delivery hit a record US$1,435.3 per ounce in New York on Tuesday. Shandong Gold Mining Co rose 3.6 percent to 51.21 yuan. Zhongjin Gold Corp added 2 percent to 38.73 yuan.
China Railway Construction Corp lost 3.3 percent to 7.08 yuan after it said it had halted work on three projects in Libya and evacuated most of its workers. The projects are worth US$4.24 billion.
The Shanghai Composite Index edged down 0.2 percent to 2,913.81. Turnover fell to 165 billion yuan (US$25 billion) from yesterday's 172 billion yuan.
Oil for April delivery gained as much as US$1.01, or 1 percent, to US$100.64 a barrel in electronic trading in New York on Tuesday over concerns uprisings in the Middle East will spread from Libya to Iran.
Analysts are concerned rising oil prices may speed up inflation and hobble the economic recovery, but they also said the current situation in the Middle East is not likely to result in an oil crisis.
"Oil demands in February and March are usually high, and the recent rally is the result of both demand and panic," said He Qingming, an analyst with Pingan Securities. "Oil prices are likely to go up, but not significantly."
Airlines led the declines yesterday. China Southern Airlines dropped 2.1 percent to 8.69 yuan. Air China sank 2 percent to 11.69 yuan.
Gold miners did well as gold for April delivery hit a record US$1,435.3 per ounce in New York on Tuesday. Shandong Gold Mining Co rose 3.6 percent to 51.21 yuan. Zhongjin Gold Corp added 2 percent to 38.73 yuan.
China Railway Construction Corp lost 3.3 percent to 7.08 yuan after it said it had halted work on three projects in Libya and evacuated most of its workers. The projects are worth US$4.24 billion.
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