Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080628/article_364904.htm
Black Friday plunges blue chips into the red
Created: 2008-6-28 0:44:02, Updated: 2008-6-28 1:32:56
Author:Zhu Shenshen
SHANGHAI'S key stock index plunged about 5.3 percent yesterday, spurred by weak overseas markets, speculation on interest rate rises and new initial public offerings, which will siphon capital from the market.
The Shanghai Composite Index lost 5.29 percent, or 153.42 points, to 2,748.43 yesterday. The index lost 2.94 percent this week.
Trade volume was 61.72 billion yuan (US$8.94 billion) yesterday compared with 69.18 billion yuan in the previous session.
Losers in the Shanghai market outnumbered winners 745 to 33.
The Shenzhen Composite Index, which tracks the smaller market on China's mainland, was down 6.02 percent.
"The drop is natural with the IPO news and it being another 'sensitive' Friday (China often announces tightening policies at weekends)," said Sheng Xin, a Qilu Securities analyst.
Consumer prices rose 7.7 percent in May, down from April's 8.5 percent, which was the fastest in almost 12 years.
Central bank Governor Zhou Xiaochuan said last week the bank may formulate "stronger policies" to tackle price increases.
The Hang Seng Index fell for a sixth day in seven, losing 413.32 points or 1.8 percent to 22,042.35, its lowest since March 20. For the week, the index lost 3.1 percent.
On Thursday night, the Dow Jones Industrial Average plummeted more than 3 percent to its lowest level in nearly two years amid inflation worries and negative news from financial and automotive sectors. It was down another 0.5 percent soon after last night's opening.
Crude oil reached US$140.39 dollars a barrel on Thursday night and is expected to hit between US$150 and US$170 this summer.
Blue chips, from banks and properties to oil firms, led the decline in Shanghai yesterday.
Pudong Bank slid 6.28 percent to 22.99 yuan and Industrial and Commercial Bank of China, the country's biggest lender, fell 3.09 percent to 5.01 yuan.
China Vanke, the biggest developer, lost 7.28 percent to 9.04 yuan. Poly Real Estate, the second biggest, shed 9.53 to 13.29 yuan.
China Petroleum and Chemical Corp, the biggest oil refiner, sank 9.12 percent to close at 10.27 yuan.
PetroChina, the nation's largest oil producer and the biggest stock by market capitalization, fell 3.47 percent to 15 yuan.
Wan Bing, an analyst at GF Securities, said the index would range from 2,700 to 3,000 in the short term.
Profit growth at industrial companies slowed to 20.9 percent in the first five months this year from 42.1 percent a year earlier, the National Bureau of Statistics said yesterday.
The Shanghai Composite Index lost 5.29 percent, or 153.42 points, to 2,748.43 yesterday. The index lost 2.94 percent this week.
Trade volume was 61.72 billion yuan (US$8.94 billion) yesterday compared with 69.18 billion yuan in the previous session.
Losers in the Shanghai market outnumbered winners 745 to 33.
The Shenzhen Composite Index, which tracks the smaller market on China's mainland, was down 6.02 percent.
"The drop is natural with the IPO news and it being another 'sensitive' Friday (China often announces tightening policies at weekends)," said Sheng Xin, a Qilu Securities analyst.
Consumer prices rose 7.7 percent in May, down from April's 8.5 percent, which was the fastest in almost 12 years.
Central bank Governor Zhou Xiaochuan said last week the bank may formulate "stronger policies" to tackle price increases.
The Hang Seng Index fell for a sixth day in seven, losing 413.32 points or 1.8 percent to 22,042.35, its lowest since March 20. For the week, the index lost 3.1 percent.
On Thursday night, the Dow Jones Industrial Average plummeted more than 3 percent to its lowest level in nearly two years amid inflation worries and negative news from financial and automotive sectors. It was down another 0.5 percent soon after last night's opening.
Crude oil reached US$140.39 dollars a barrel on Thursday night and is expected to hit between US$150 and US$170 this summer.
Blue chips, from banks and properties to oil firms, led the decline in Shanghai yesterday.
Pudong Bank slid 6.28 percent to 22.99 yuan and Industrial and Commercial Bank of China, the country's biggest lender, fell 3.09 percent to 5.01 yuan.
China Vanke, the biggest developer, lost 7.28 percent to 9.04 yuan. Poly Real Estate, the second biggest, shed 9.53 to 13.29 yuan.
China Petroleum and Chemical Corp, the biggest oil refiner, sank 9.12 percent to close at 10.27 yuan.
PetroChina, the nation's largest oil producer and the biggest stock by market capitalization, fell 3.47 percent to 15 yuan.
Wan Bing, an analyst at GF Securities, said the index would range from 2,700 to 3,000 in the short term.
Profit growth at industrial companies slowed to 20.9 percent in the first five months this year from 42.1 percent a year earlier, the National Bureau of Statistics said yesterday.
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