Shanghai stocks take a beating, fall nearly 4%

By Ding Yining  |   2008-12-12  |     ONLINE EDITION

SHANGHAI'S key stock index stumbled nearly 4 percent at the 3pm close today.

The benchmark Shanghai Composite Index dropped 3.81 percent, or 77.47 points, to close at 1,954.22 points. Turnover was 73.3 billion yuan (US$10.7 billion), less than yesterday's 89.8 billion yuan. Losing shares outnumbered gainers 787 to 75 and 45 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, fell 3.95 percent, or 24.06 points, to close at 584.74 points.

Blue chips on the Shanghai index suffered losses today. Ping An Insurance (Group) Co, China's second-largest insurer, tumbled 6.18 percent to 25.94 yuan. PetroChina, the biggest index component, declined 2.36 percent to 11.15 yuan.

Industrial & Commercial Bank of China, the nation's biggest lender, retreated 3.78 percent to 3.82 yuan. China Construction Bank lowered 4.12 percent to close at 4.19 yuan.

"It is quite obvious that the rebound has come to an end and the market is facing increasing pressure with shrinking turnover and investors will be especially cautious," according to a research note by Shenyin & Wanguo Securities.

Communications companies gained after the Ministry of Industry and Information Technology announced today it would issue 3G licenses to operators by the end of this year or the beginning of next year. Eastern Communications Co Ltd surged the daily limit of 10 percent to 3.93 yuan. Sichuan Huiyuan Optical Communications Co Ltd jumped 6.52 percent to 3.76 yuan.

Airlines bucked the down trend and gained for the second straight day. Both China Southern Airlines Co Ltd and China Eastern Airlines Co Ltd surged the daily limit of 10 percent, equaling yesterday's gains. Air China, the biggest domestic carrier by market value, advanced 4.46 percent to close at 5.15 yuan.