Friday, June 13, 2008

China Stocks Slip 1.3 Pct In Tiny Turnover - June 13, 2008

SHANGHAI: China's main stock index slipped 1.28 per cent on Friday in tiny turnover, as financial and property shares in particular remained weighed down by worries about inflation and tightening monetary policy.

The Shanghai Composite Index ended the morning at 2,919.606 points, near its intra-day low of 2,912.971. It has dropped 15 per cent this month and 52 per cent from last October's record peak.

Falling Shanghai stocks outnumbered gainers by 707 to 181, while turnover in Shanghai A shares was a very thin 20.7 billion yuan ($3.0 billion), down from Thursday morning's 29.4 billion.

"Investors worry that the market may have entered a long-term slump that could last well after the Olympics" in August, said Li Shiming, analyst at Xiangcai Securities.

Brokerage shares were big losers because securities houses would face lower commissions during a prolonged market slump. Brokerage stocks rose early this week on rumours that authorities might soon introduce margin trade to help support the market, but hopes for that intervention are now fading.

Haitong Securities lost 7.46 per cent to 24.80 yuan while property giant Vanke dropped 4.09 per cent to 16.64 yuan.

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