Stocks fall on fears of slowing economies
By Feng Jianmin |
August 3, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday fell to a six-week low, led by commodity producers who were concerned about a slowing industrial expansion in both the world's largest and second-largest economies.
The Shanghai Composite Index lost 0.9 percent to 2,679.26, the lowest close since June 22.
Shares declined following weak overseas stock markets after the announcement by the United States that its manufacturing barely grew in July. The country's manufacturing index fell to 50.9 last month from 55.3 in June, according to the Institute for Supply Management.
China reported on Monday that its industrial expansion was the slowest in 29 months in July, and the central bank said it would not relax its tight monetary stance as it continued to battle inflation and speculation in the property market.
Hu Yu, an analyst with Chinalion Securities, cited inflation, tight monetary policies and a lack of liquidity as factors hampering the stock market from performing better.
Commodity counters were among the biggest losers on concerns that slowing economic growth may crimp demand.
"Bad weather and strikes in Chile are supporting copper prices but metal prices (overall) are not likely to gain due to weak consumption and a bad economic situation," China Securities Journal said.
Jiangxi Copper Co fell 2.3 percent to 35.75 yuan (US$5.55). Inner Mongolia Baotou Steel Union Co lost 1.9 percent to 7.60 yuan. PetroChina, China's largest oil producer, shed 1.9 percent to 10.45 yuan.
Airlines also fell after they raised fuel surcharges on domestic routes yesterday after the country's top economic planning body hiked ex-factory jet fuel price on Monday.
China Eastern Airlines fell 3.3 percent to 5.25 yuan, and China Southern Airlines shed 3 percent to 8.04 yuan.
The Shanghai Composite Index lost 0.9 percent to 2,679.26, the lowest close since June 22.
Shares declined following weak overseas stock markets after the announcement by the United States that its manufacturing barely grew in July. The country's manufacturing index fell to 50.9 last month from 55.3 in June, according to the Institute for Supply Management.
China reported on Monday that its industrial expansion was the slowest in 29 months in July, and the central bank said it would not relax its tight monetary stance as it continued to battle inflation and speculation in the property market.
Hu Yu, an analyst with Chinalion Securities, cited inflation, tight monetary policies and a lack of liquidity as factors hampering the stock market from performing better.
Commodity counters were among the biggest losers on concerns that slowing economic growth may crimp demand.
"Bad weather and strikes in Chile are supporting copper prices but metal prices (overall) are not likely to gain due to weak consumption and a bad economic situation," China Securities Journal said.
Jiangxi Copper Co fell 2.3 percent to 35.75 yuan (US$5.55). Inner Mongolia Baotou Steel Union Co lost 1.9 percent to 7.60 yuan. PetroChina, China's largest oil producer, shed 1.9 percent to 10.45 yuan.
Airlines also fell after they raised fuel surcharges on domestic routes yesterday after the country's top economic planning body hiked ex-factory jet fuel price on Monday.
China Eastern Airlines fell 3.3 percent to 5.25 yuan, and China Southern Airlines shed 3 percent to 8.04 yuan.
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