Stock trading remains languid at midday amid weak sentiment

By Pan Xiaoyi  |   2008-12-30  |     ONLINE EDITION

SHANGHAI'S key stock index extended the losses in the morning session amid weak market sentiment.

The Shanghai Composite Index dipped 0.14 percent, or 2.54 points, to 1847.94 points.

The Shenzhen Composite Index, which tracks the smaller domestic market, was down 0.32 percent, or 1.82 points, to 563.35 points.

Steal producers led the declines with Tangshan Iron & Steel Co plunged by 10 percent daily cap to 4.1 yuan. Handan Iron & Steel Co slumped 6.38 percent to 3.52 yuan while Baoshan Iron & Steel Co Ltd, the country's largest steelmaker, eased 0.83 percent to 4.77 yuan.

Tangshan Iron & Steel Co, Handan Iron & Steel Co, and Chengde Xinxin Vanadium & Titanium Co, the three steelmakers will merge into one publicly traded company through a share swap, Tangshan Steel said in a statement late yesterday. After the merger, Tangshan Steel will remain as the only publicly traded unit controlled by Hebei Steel Group.

China Eastern Airlines Corp, the nation's third-largest carrier by fleet size, retreated 1.29 percent after expanding a discounted sale of new shares to its parent.

The carrier will raise a total of 7 billion yuan (US$1.02 billion) by selling shares to its parent, China Eastern Air Holding Co, it said in a statement to the Shanghai Stock Exchange yesterday.

The airlines also said it more than doubled the financial aid it has secured from the government.

Bucking the downward trend, Beiqi Foton Motor Co, China's biggest maker of commercial vehicles, rose as much as 5.96 percent to 4.8 yuan after winning an order for 450 hybrid busses from the Beijing government to be delivered in 2009. The stock has declined 64 percent this year.

Huadian Power International Corp, the listed unit of China's fourth-largest power producer, added 0.55 percent, to 3.65 yuan after it said its board approved the purchase of a 100 percent stake in Hebei Huarui Energy Co from 12 Chinese individuals for 729 million yuan.

Huaxia Bank Co, the Chinese lender partly owned by Deutsche Bank AG, said it plans to nominate President Wu Jian as chairman, replacing Zhai Hongxiang, who will retire. The stock gained 0.13 percent, to 7.68 yuan.