Shanghai index drops 6.31% on profit taking

Source: Shanghai Daily  |   2008-11-18  |     ONLINE EDITION

SHANGHAI’S key stock index tumbled more than 6 percent and once more breached the psychologically important 2,000 level amid due to profit taking today.

A total of 679.8 billion yuan (US$99.97 billion) was wiped off the market’s value today. Nearly 850 shares on the Shanghai and Shenzhen markets tumbled by the daily limit.

The benchmark Shanghai Composite Index almost reversed last week’s gains and tumbled 6.31 percent, or 128.05 points, to close at 1902.43 points, after reaching an intraday low of 1,889.87.

Losers outnumbered gainers 819 to 53. Only one stock did not change on the two bourses. Turnover increased to 103.7 billion yuan, compared with 92.4 billion yuan on Monday.

The Shenzhen Composite Index, which tracks the smaller domestic market, was down 6.85 percent, or 38.63 points, to 524.96 points. Turnover was 43.6 billion yuan.

The Shanghai index has fallen more than 60 percent from its record close in October 2007.

The plunge followed drops in overseas markets over recession fears.

Wall Street ended lower yesterday after Citigroup announced it would slash 52,000 jobs, which added to the bleak economic outlook.

The Japanese economy has entered its first recession in seven years, data showed on Monday. In Tokyo, the Nikkei 225 dropped 2 per cent to 8,356.18 after the country’s gross domestic product shrank 0.1 per cent in the three months to September 30, following a decline of 0.9 per cent in the second quarter.