Local stocks drop after 2-day gains

By Zhu Shenshen  |   2008-6-27  |     NEWSPAPER EDITION

THE benchmark stock index in Shanghai slightly dropped yesterday led by declines in banks and oil refiners amid profit-taking after Tuesday and Wednesday's gains.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, lost 0.11 percent to 2.901.85.

The turnover rose to 69.18 billion yuan (US$10.02 billion) from 67.51 billion yuan.

"It's natural for the index's drop after two consecutive day's gain," said Wang Xingjun, Donghai Securities' analyst. "The investors' confidence seems to have started the recovery and the index will gradually rebound in the short period."

Oil firms and banks decreased in profit taking yesterday.

China Petroleum & Chemical Corp, Asia's largest refiner and also known as Sinopec, was down 2.16 percent at 11.30 yuan.

PetroChina, the biggest index component, fell 1.4 percent at 15.54 yuan.

Industrial and Commercial Bank of China, the country's largest commercial bank, fell 2.08 percent to 5.17 yuan.

Dealers noted positive comments by the securities regulator.

The China Securities Regulatory Commission said yesterday that it will reject any applications for refinancing plans or stock incentive proposals from listed firms if they fail to meet required corporate governance standards by the end of November.