Stock index tumbles over 4% to lowest level in 14 months
By Ding Yining and Feng Jianmin |
June 30, 2010, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks tumbled more than 4 percent yesterday to the lowest level in 14 months amidst liquidity concerns and sluggish performance of metal producers.
The benchmark Shanghai Composite Index slid 4.27 percent, or 108.22 points, to close at 2,427.05. Turnover rose to 71.4 billion yuan (US$10.5 billion), almost 60 percent more than that of Monday's.
The gauge has lost 22 percent this quarter, probably the biggest quarterly loss since March 2008, amid concern that tighter rules on the property market will bring uncertainties and that a shift of currency policy may hurt exports.
The Shenzhen Composite Index, which covers the smaller mainland exchange, retreated 2.86 percent to 983.91 points.
The most active July contract for the CSI 300 index futures tumbled 4.79 percent to 2,607 points.
"A long period of correction is usually followed by a sharp fall and as the index is now below 2,500 points, investors should be cautious to enter the market later," GF Securities wrote in a research report.
Banks were generally flat. The Bank of Communications tumbled 4.86 percent to 6.07 yuan. China Construction Bank lost 3.46 percent to 4.74 yuan. The Bank of China lost 2.25 percent to 3.47 yuan.
Metal producers were also among the losers after gold drooped 1.4 percent to US$1,238.60 an ounce on Monday. Zhongjin Gold Co slid 5.95 percent to 51.98 yuan. Shandong Gold Mining Co tumbled 5.70 percent to 36.08 yuan. Zijin Mining Group Co lowered 6.39 percent to 6.30 yuan.
Property shares also closed lower after a report showed that sales of homes in non-central areas in Shanghai rebounded after developers offered discounts.
Gemdale Corp slumped 9.91 percent to 6.18 yuan, the most in more than a month. Zhao Hanzhong resigned as its senior vice president and a member of the company's board for personal reasons, the company said in a filing.
China Vanke dipped 3.79 percent to 6.85 yuan. Poly Real Estate Co shed 7.08 percent to 10.63 yuan.
Meanwhile, the Agricultural Bank of China is looking forward in coming days to raising as much as US$23.1 billion from its dual listing, which would surpass the Industrial and Commercial Bank of China's US$21.9 billion share sale in 2006 to become the largest initial public offering in the world. The bank priced its A shares between 2.52 yuan and 2.68 yuan each, lower than previous estimates.
The benchmark Shanghai Composite Index slid 4.27 percent, or 108.22 points, to close at 2,427.05. Turnover rose to 71.4 billion yuan (US$10.5 billion), almost 60 percent more than that of Monday's.
The gauge has lost 22 percent this quarter, probably the biggest quarterly loss since March 2008, amid concern that tighter rules on the property market will bring uncertainties and that a shift of currency policy may hurt exports.
The Shenzhen Composite Index, which covers the smaller mainland exchange, retreated 2.86 percent to 983.91 points.
The most active July contract for the CSI 300 index futures tumbled 4.79 percent to 2,607 points.
"A long period of correction is usually followed by a sharp fall and as the index is now below 2,500 points, investors should be cautious to enter the market later," GF Securities wrote in a research report.
Banks were generally flat. The Bank of Communications tumbled 4.86 percent to 6.07 yuan. China Construction Bank lost 3.46 percent to 4.74 yuan. The Bank of China lost 2.25 percent to 3.47 yuan.
Metal producers were also among the losers after gold drooped 1.4 percent to US$1,238.60 an ounce on Monday. Zhongjin Gold Co slid 5.95 percent to 51.98 yuan. Shandong Gold Mining Co tumbled 5.70 percent to 36.08 yuan. Zijin Mining Group Co lowered 6.39 percent to 6.30 yuan.
Property shares also closed lower after a report showed that sales of homes in non-central areas in Shanghai rebounded after developers offered discounts.
Gemdale Corp slumped 9.91 percent to 6.18 yuan, the most in more than a month. Zhao Hanzhong resigned as its senior vice president and a member of the company's board for personal reasons, the company said in a filing.
China Vanke dipped 3.79 percent to 6.85 yuan. Poly Real Estate Co shed 7.08 percent to 10.63 yuan.
Meanwhile, the Agricultural Bank of China is looking forward in coming days to raising as much as US$23.1 billion from its dual listing, which would surpass the Industrial and Commercial Bank of China's US$21.9 billion share sale in 2006 to become the largest initial public offering in the world. The bank priced its A shares between 2.52 yuan and 2.68 yuan each, lower than previous estimates.
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