Market hits biggest weekly slump in 3 months | Shanghai Daily

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Market hits biggest weekly slump in 3 months

SHANGHAI'S key stock index extended losses today, sending the gauge to its biggest weekly loss in three months, with steel producers leading the decliners on concerns of overcapacity.

The benchmark Shanghai Composite Index lost 2.36 percent, or 74.72 points, to close at 3,096.26 points, driving the key index to a 6.4 percent weekly loss. Turnover shrank to 172 billion yuan (US$25.3 billion) from 254.5 billion yuan on Thursday. Losers outnumbered gainers 717 to 154 and 8 stocks remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, dropped 2.91 percent to close at 1,137.65 points.

Steel producers led the decliners after European Union Chamber of Commerce in China said on Wednesday that overcapacity in China's steel sector amounted to 100 million to 200 million tons at the end of 2008. Capacity for 2009 is still climbing, the chamber said. Baoshan Iron & Steel Co retreated 6.5 percent to 7.8 yuan. Xinjiang Ba Yi Iron & Steel Co decreased 5.7 percent to 13.2 yuan. Wuhan Iron and Steel withdrew 5.5 percent to 7.85 yuan.

Zijin Mining Group Co, the country's largest gold producer, tumbled 7.7 percent to 10 yuan after saying billionaire Chen Fashu sold 146 million of the company's shares, reducing his stake to 11.946 percent from 12.95 percent. Zhongjin Gold Corp, the second biggest by market value, was off 6.4 percent to 58.5 yuan. Shandong Gold Mining Co slumped 8.2 percent to 79.02 yuan.

Bucking the downward trend, eco-friendly shares were strong after China pledged yesterday to cut carbon emissions by up to 45 percent per unit of GDP by 2020 compared with 2005 levels.

Zhejiang Feida Environmental Science & Technology Co jumped by the 10 percent daily cap to 16.12 yuan and Tianjin Capital Environmental Protection Group Co surged 5.9 percent to 7.23 yuan.




 

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