Uncertainty gives morning market the jitters

By Ding Yining  |   2009-6-23  |     ONLINE EDITION

SHANGHAI'S key stock index lowered more than 1 percent this morning after closing at a 11-month high yesterday as financial shares dropped with fears of a slowing of the global economy.

The benchmark Shanghai Composite Index was down 1.40 percent, or 40.53 points, to close at 2,855.77 points. Turnover was 69.9 billion yuan (US$10.2 billion). Losers outnumbered gainers 627 to 223 and 58 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, lost 1.03 percent to close at 926.06 points.

The global economy would retract 2.9 percent this year, compared with a previous prediction of 1.7 percent, the World Bank said in a report yesterday.

Banks showed mixed results. Industrial & Commercial Bank of China, the nation's biggest lender, dipped 0.75 percent to 5.31 yuan. Shanghai Pudong Development Bank edged up 0.72 percent to 22.30 yuan. China Construction Bank added 0.83 percent to close at 6.09 yuan. Bank of Communications lost 1.33 percent to 8.87 yuan.

Sinolink Securities lost 1.99 percent to 21.70 yuan. Haitong Securities buckled 3.86 percent to 16.18 yuan. Ping An Insurance Group Co was down 1.97 percent to 45.80 yuan and China Life Insurance Co Ltd, the country's largest life insurance company, was down 1.20 percent to 26.45 yuan.

China Petroleum & Chemical Corp, Asia's largest refiner, also known as Sinopec, decreased 2.38 percent to 10.27 yuan. PetroChina, the largest oil producer and biggest heavyweight in the market, tumbled 2.81 percent to 13.84 yuan.

Metal producers were also weak. Jiangxi Copper Co, the country's biggest producer of the metal, was down 1.91 percent to 29.33 yuan. Zijin Mining Co retreated 2.21 percent to 9.29 yuan. Shandong Gold Mining Co Ltd dropped 3.50 percent to 53.74 yuan.