Shanghai stocks finish day under 2000 points

By Ding Yining  |   2008-12-22  |     ONLINE EDITION

SHANGHAI'S key stock index ended lower today below 2,000 points due to falls among heavyweights and the finance sector.

The benchmark Shanghai Composite Index was down 1.52 percent, or 30.71 points, to close at 1,987.76 points. Turnover was 60.4 billion yuan(US$8.83 billion), down from 72.9 billion yuan on the previous trading day. Losers outnumbered gainers 500 to 358 and 50 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, dipped 0.18 percent to close at 621.81 points.

China Petroleum & Chemical Corp, Asia's largest refiner and also known as Sinopec, slumped 3.27 percent to 7.68 yuan. PetroChina, the biggest index component, dropped 1.44 percent to close at 10.92 yuan.

Industrial & Commercial Bank of China, the nation's biggest lender, fell 1.05 percent to 3.78 yuan. Shanghai Pudong Development Bank retreated 2.93 percent to 14.24 yuan.

China Pacific Insurance (Group) Co., the nation's third-largest insurer, sank 5.09 percent to close at 11.74 yuan as 1.58 billion shares sold to corporate shareholders last year become tradable on Thursday. Ping An Insurance (Group) Co, China's second- largest insurer, dropped 5.31 percent to 28.73 yuan.

A total of 15.3 billion A shares in 70 listed companies will become tradable this week, adding pressure to the market from corporate shareholders looking to dispose of the shares.

Furthermore, shares worth 3.46 trillion yuan will become tradable next year, according to Wind Info, a local provider of financial data.

"There is still possibility that the index will fall further because investors are generally cautious about the gloomy outlook for profits of listed companies in 2008," according to a research note by Shenyin & Wanguo Securities.

Telecommunication companies were among the gainers with the looming approach of the issue of the 3G license. ZET Corporation advanced 4.09 percent to 28.52 yuan, Beijing Zhongchuang Telecom Test Co Ltd rallied 8.64 percent to close at 12.32 yuan and Shanghai Potevio Co Ltd was up 5.48 percent to 6.74 yuan.