Shanghai stocks follow global trend downward

By Ding Yining  |   2008-11-12  |     NEWSPAPER EDITION

THE benchmark Shanghai Composite Index dropped by 1.66 percent, or 31.19 points, to 1,843.61 points yesterday.

Turnover was 56.7 billion yuan (US$8.3 billion), compared to Monday's 58.9 billion yuan.

Losers outnumbered gainers 582 to 269 while 57 remained unchanged.

"The index will probably go through more minor fluctuations in the near future and after that it will still be capable of rising in the long term," according to a research note by GF Securities.

Asian and American stocks were also down. Singapore's Straits Times Index lowered 4.26 percent to 1,804.77 points. Japan's Nikkei 225 buckled 3 percent to 8.890.30 points and the Topix retreated 2.98 percent to 889.36 points. The Nasdaq decreased 1.86 percent on Monday and the S&P 500 lost 1.27 percent to 919.21 points.

Heavyweights retreated after Monday's gains. PetroChina, the biggest index component, fell 2.05 percent. China Petroleum & Chemical Corp (Sinopec), Asia's largest refiner, dropped 3.42 percent to 7.34 yuan.

Among the gainers, China Vanke Co and Poly Real Estate Group Co, the nation's two biggest developers, both rose on speculation the government would cut borrowing costs further. Vanke added 2.28 percent to 6.27 yuan. Poly increased 3.05 percent to 14.54 yuan. Anhui Hengyuan Coal Industry and Electric Power Co rallied 7.31 percent to 9.84 yuan.

Both Long Jian Road & Bridge Co and Long Yuan Construction Group Co surged by the daily limit of 10 percent after the government pledged to support infrastructure construction.