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Uncertainty weighs on Shanghai stock market
By Ye Zhen |
November 6, 2012, Tuesday
|
Online Edition
Online Edition
SHANGHAI stocks ended lower for a second day amid cautious sentiment ahead of the 18th National Congress of the Communist Party of China and the US presidential election this week.
The benchmark Shanghai Composite Index lost 0.38 percent to close at 2,106 points. Daily turnover was 53.7 billion yuan (US$8.7 billion).
Investors adopted a wait-and-see stance as both China and the United States are about to announce their new leaders. The market will continue to fluctuate in short term due to uncertainties, Founder Securities said in a report.
Some 8.4 billion non-tradable shares of 27 companies listed in Shanghai and Shenzhen markets will be allowed to enter into circulation this week. They are valued at 88.8 billion yuan, more than tripling the amount in the previous week.
Unlocking non-tradable shares may lead to an oversupply of shares and drag share prices down in a bear market as shareholders tend to liquidize their holdings, analysts said.
Distilleries led the market down. Kweichow Moutai Co, a leading producer of high-end liquor in China, lost 2.9 percent to 235.93 yuan. Sichuan Tuopai Shede Wine Co shed 2 percent to 29.28 yuan. Sichuan Swellfun Co dropped 2.4 percent to 23.63 yuan.
Market decline was slowed by a surge among brokerages. Sinolink Securities Co jumped 7.4 percent to 16.33 yuan. Industrial Securities Co rose 3.5 percent to 10.91 yuan. Soochow Securities Co added 1.2 percent to 8.30 yuan.
The benchmark Shanghai Composite Index lost 0.38 percent to close at 2,106 points. Daily turnover was 53.7 billion yuan (US$8.7 billion).
Investors adopted a wait-and-see stance as both China and the United States are about to announce their new leaders. The market will continue to fluctuate in short term due to uncertainties, Founder Securities said in a report.
Some 8.4 billion non-tradable shares of 27 companies listed in Shanghai and Shenzhen markets will be allowed to enter into circulation this week. They are valued at 88.8 billion yuan, more than tripling the amount in the previous week.
Unlocking non-tradable shares may lead to an oversupply of shares and drag share prices down in a bear market as shareholders tend to liquidize their holdings, analysts said.
Distilleries led the market down. Kweichow Moutai Co, a leading producer of high-end liquor in China, lost 2.9 percent to 235.93 yuan. Sichuan Tuopai Shede Wine Co shed 2 percent to 29.28 yuan. Sichuan Swellfun Co dropped 2.4 percent to 23.63 yuan.
Market decline was slowed by a surge among brokerages. Sinolink Securities Co jumped 7.4 percent to 16.33 yuan. Industrial Securities Co rose 3.5 percent to 10.91 yuan. Soochow Securities Co added 1.2 percent to 8.30 yuan.
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