SHANGHAI: Chinese share prices closed down 5.29 pc on Friday as
investors tracked losses from weak overseas markets overnight and oil
hit new record highs, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares,
closed down 153.42 points at 2,748.43 on turnover of 61.7 bn yuan (9.0
bn dollars).
Investors were unsettled as the New York stock market plunged more
than three pc overnight and oil prices jumped to close to 142 dollars
a barrel in Asian trading, they said.
Oil majors, airlines, and auto makers, which are more exposed to
global oil prices, were sharply lower on rising fuel costs worries
following the spike in oil prices.
Air China was down 8.5 pc at 8.11 yuan and China Eastern Airlines fell
9.7 pc to 6.42.
Sinopec, the country's largest oil refiner, lost 9.12 pc to 10.27.
Like other Chinese refiners, it must abide by government price
controls despite rising costs.
Concerns over new share offers also weighed down the index as
investors worried liquidity pressure would further impact the already
weak stock market.
"The US market weakness is affecting local investors' confidence,"
Jacky Zhang at CSC International Holdings told Dow Jones Newswires.
The securities regulator said late on Thursday that it would assess an
application for initial public offerings in Shanghai by Everbright
Securities and China South Locomotive and Rolling Stock Corp on
Monday.
Everbright Securities said in a draft prospectus it plans to sell up
to 520 mn A shares and the official Securities Times estimated the
brokerage could raise more than 10 bn yuan (1.5 bn dollars) from the
IPO.
South Locomotive, the nation's top rail transport equipment maker,
said it plans to issue up to three billion A-shares and offer up to
two billion H-shares in Hong Kong later.
"Market sentiment was already weak and now the pending share supply,
all from relatively large companies, are further blows," Xu Yan at
Guotai Junan Securities said.
Financial and real estate companies were among the worst performers on
concerns over rising inflation and further monetary policy and credit
tightening.
Shanghai Pudong Development Bank slid 6.3 pc to 22.99 yuan and
property developer China Vanke fell 7.3 pc to 9.04.
The Shanghai A-share Index lost 161.12 points, or 5.29 pc, at 2,882.95
on turnover of 61.4 bn yuan. The Shenzhen A-share Index was down 53.8
points, or 6.06 pc, at 833.21 on turnover of 32.8 bn yuan.
The Shanghai B-share Index was down 8.84 points, or 4.05 pc, to 209.12
on turnover of 320.6 mn dollars. The Shenzhen B-share Index lost 22.61
points, or 4.58 pc, at 471.21 on turnover of 192.05 mn Hong Kong
dollars (24.6 mn US dollars).
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