PMI reading is no help to key index
By Lu Nengneng |
March 2, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI'S key stock index edged down yesterday, with investors not impressed by a slight improvement in China's key manufacturing index.
The Shanghai Composite Index shed 0.1 percent to end at 2,426.12, extending Wednesday's losses.
China's official Purchasing Managers' Index, a key gauge of industrial activities, improved for a third month in February, rising to 51 from 50.5 in January, which was higher than the HSBC Flash China PMI reading of 49.7, the data showed yesterday.
China International Capital Corp poured cold water on the reading when it said in a note that although the index was above 50, which signaled expansion, the level is still lower than the historical average of 52.7 a year ago and that an industrial revival may not materialize soon.
Resource stocks fell. Jiangxi Copper, the nation's biggest producer of the metal, dipped 0.7 percent to 26.78 yuan. Aluminum Corp of China lost 0.8 percent to 7.45 yuan. Baoshan Iron and Steel Co, China's largest listed steel firm, shed 0.8 percent to 5.23 yuan.
CICC said the central bank may need to trim the bank reserve requirement ratio two or three times in the first half of the year. The central bank made the first ratio cut this year by 0.5 percentage point effective from last Friday which pumped 400 billion yuan (US$63.5 billion) into the financial system.
The Industrial and Commercial Bank of China dipped 0.5 percent to 4.41 yuan. China Construction Bank shed 0.4 percent to 4.86 yuan.
The Shanghai Composite Index shed 0.1 percent to end at 2,426.12, extending Wednesday's losses.
China's official Purchasing Managers' Index, a key gauge of industrial activities, improved for a third month in February, rising to 51 from 50.5 in January, which was higher than the HSBC Flash China PMI reading of 49.7, the data showed yesterday.
China International Capital Corp poured cold water on the reading when it said in a note that although the index was above 50, which signaled expansion, the level is still lower than the historical average of 52.7 a year ago and that an industrial revival may not materialize soon.
Resource stocks fell. Jiangxi Copper, the nation's biggest producer of the metal, dipped 0.7 percent to 26.78 yuan. Aluminum Corp of China lost 0.8 percent to 7.45 yuan. Baoshan Iron and Steel Co, China's largest listed steel firm, shed 0.8 percent to 5.23 yuan.
CICC said the central bank may need to trim the bank reserve requirement ratio two or three times in the first half of the year. The central bank made the first ratio cut this year by 0.5 percentage point effective from last Friday which pumped 400 billion yuan (US$63.5 billion) into the financial system.
The Industrial and Commercial Bank of China dipped 0.5 percent to 4.41 yuan. China Construction Bank shed 0.4 percent to 4.86 yuan.
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