Shanghai Daily | 上海日报 -- English Window to China News

SHANGHAI'S key stock index extended last week's losses to yesterday, making it the longest losing streak since the 10-day long rout in June. The market fell amid growing concerns corporate earnings could worsen in the stagnant economic environment.

The Shanghai Composite Index dipped 0.06 percent, or 1.04 points, to 1850.48, extending a 9.3-percent loss over last week. Losers outnumbered gainers 431 to 378 while 32 remained unchanged. The turnover in the local market, however, rose to 37.1 billion yuan (US$5.5 billion), compared with 34.8 billion on the previous trading day.

"Market confidence remained weak after last week's losing streak. Investors are cautious in the final trading days of the year. Due to a lack of positive measures to boost the market, share performance is expected to remain sluggish," Shenyin Wanguo Securities Co said.

China's five biggest power companies, led by Huaneng Power International Inc, reportedly failed to sell fuel to major power suppliers because of a dispute over prices.

Coal producers and power suppliers reacted in contrary ways to the news. China Shenhua Energy Co fell 3.28 percent to 17.97 yuan while Huaneng Power International Inc rose 3.71 percent to 6.99 yuan.

Bucking the downward trend, gold producers gained as gold advanced to an 11-week high. Zhongjin Gold Corp climbed 9.07 percent to 37.29 yuan. "The worsening economic statistics outweigh the government's stimulus package. It is hard to reverse weak investor confidence," Debon Securities Co said yesterday.