Shanghai market ends week down 3%
By Joyce Pan |
January 23, 2010, Saturday
|
Print Edition
Print Edition
SHANGHAI'S key stock ended lower yesterday, taking the weekly loss to 3 percent, amid speculations the benchmark interest rate will be raised soon.
The benchmark Shanghai Composite Index dropped 0.96 percent, or 30.27 points, to close at 3,128.59. Turnover rose to 163.6 billion yuan (US$24.1 billion) from 142.1 billion yuan on Thursday.
Analysts from Guotai Jun'an Securities Co wrote in a note that the interest rate may be raised as soon as next week after economic growth was beyond expectation and increased the risk of inflation.
Haitong Securities Co predicted the rise would occur in the second quarter.
Shares plunged as the market opened following tumbles in nearby markets on lower commodity shares. However, a strong rebound by lenders narrowed the losses as higher rates may boost their earnings.
The Bank of China inched up 0.73 percent to 4.16 yuan while China Merchants Bank jumped 3.2 percent to 16.67 yuan.
"The speculation on a rate hike is growing, which could shore up the banking sector in a short run but dampen other heavyweights and blue chips, especially property developers," said Jiang Xuewen, an analyst from S&E Securities Brokerage Co.
Metal producers led the losers. Xinjiang Ba Yi Iron and Steel Co plummeted 7.9 percent to 13.8 yuan. Jiangxi Copper Co dropped 2.5 percent to 36.4 yuan. Aluminum Corp of China shed 1.8 percent to 13.48 yuan. Zijin Mining Group Co, the country's largest gold producer, slid 2.9 percent to 8.84 yuan.
The benchmark Shanghai Composite Index dropped 0.96 percent, or 30.27 points, to close at 3,128.59. Turnover rose to 163.6 billion yuan (US$24.1 billion) from 142.1 billion yuan on Thursday.
Analysts from Guotai Jun'an Securities Co wrote in a note that the interest rate may be raised as soon as next week after economic growth was beyond expectation and increased the risk of inflation.
Haitong Securities Co predicted the rise would occur in the second quarter.
Shares plunged as the market opened following tumbles in nearby markets on lower commodity shares. However, a strong rebound by lenders narrowed the losses as higher rates may boost their earnings.
The Bank of China inched up 0.73 percent to 4.16 yuan while China Merchants Bank jumped 3.2 percent to 16.67 yuan.
"The speculation on a rate hike is growing, which could shore up the banking sector in a short run but dampen other heavyweights and blue chips, especially property developers," said Jiang Xuewen, an analyst from S&E Securities Brokerage Co.
Metal producers led the losers. Xinjiang Ba Yi Iron and Steel Co plummeted 7.9 percent to 13.8 yuan. Jiangxi Copper Co dropped 2.5 percent to 36.4 yuan. Aluminum Corp of China shed 1.8 percent to 13.48 yuan. Zijin Mining Group Co, the country's largest gold producer, slid 2.9 percent to 8.84 yuan.
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