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Shanghai shares mixed after reserve ratio hike
By Feng Jianmin |
February 21, 2011, Monday
|
Online Edition
Online Edition
SHANGHAI'S key stock index closed flat in the morning session after China raised reserve requirement ratio on banks after the market closed on Friday and lifted oil prices on Saturday.
The Shanghai Composite Index edged up 0.12 percent to 2,903.38. Turnover eroded to 73.4 billion yuan (US$11.2 billion) from last Friday morning's 78.5 billion yuan.
The reserve hike, to be effective from Thursday, will likely freeze over 350 billion yuan from the market. Analysts expected the act to affect banking and real estate sectors but the stock market was not likely to see a further slump at its current low value.
"The rise of reserve requirement ratio is mild and the effect was absorbed by a drop last Friday," said Zhang Gang with Central China Securities.
Banks and property developers dropped. Industrial and Commercial Bank of China fell 1 percent to 4.29 yuan. China Construction Bank similarly lost 1 percent to 4.85 yuaan
China Vanke went down 1 percent to 8.26 yuan. Gemdale Corp dropped 1.6 percent to 6.72 yuan.
Oil producers were mixed after China raised retail gasoline and diesel prices by up to 4.5 percent, the first increase this year, to reflect higher crude costs on international markets.
PetroChina, the largest heavy weight on market, was down 0.4 percent to 11.53 yuan. Sinopec, the largest oil refiner in Asia, rose 1 percent to 9.23 yuan.
The Shanghai Composite Index edged up 0.12 percent to 2,903.38. Turnover eroded to 73.4 billion yuan (US$11.2 billion) from last Friday morning's 78.5 billion yuan.
The reserve hike, to be effective from Thursday, will likely freeze over 350 billion yuan from the market. Analysts expected the act to affect banking and real estate sectors but the stock market was not likely to see a further slump at its current low value.
"The rise of reserve requirement ratio is mild and the effect was absorbed by a drop last Friday," said Zhang Gang with Central China Securities.
Banks and property developers dropped. Industrial and Commercial Bank of China fell 1 percent to 4.29 yuan. China Construction Bank similarly lost 1 percent to 4.85 yuaan
China Vanke went down 1 percent to 8.26 yuan. Gemdale Corp dropped 1.6 percent to 6.72 yuan.
Oil producers were mixed after China raised retail gasoline and diesel prices by up to 4.5 percent, the first increase this year, to reflect higher crude costs on international markets.
PetroChina, the largest heavy weight on market, was down 0.4 percent to 11.53 yuan. Sinopec, the largest oil refiner in Asia, rose 1 percent to 9.23 yuan.
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