Shares fall on declines by coal and steel companies

Song Yingge
Song Yingge
The central government’s call to moderate price surges hits investor sentiment
Song Yingge
Song Yingge

Shanghai stocks dipped today as market sentiment was weighed down by coal mining and steel companies  following the central government’s call to ease price surges.

The Shanghai Composite Index lost 0.15 percent to end at 3,246.45 points after a two-day rebound.

A cloud hung over coal miners over a possible cooling in prices in the near future after the National Development and Reform Commission said China would add 200 million tons of coal to help lift supply and reduce prices, Xinhua reported on Tuesday.

Baotailong New Materials Co, a Shanghai-listed coal miner, plunged 7.31 percent to 9.38 yuan (US$1.40), while Fangda Special Steel Technology Co lost 4.63 percent to 12.77 yuan.

Meanwhile rebar futures posted a five-day decline after the government’s call to dampen speculation while the Shanghai Futures Exchange limited trading by lifting the transaction fee to 0.05 percent from 0.01 percent yesterday.

“Investor sentiment remains low amid concerns from the central government, causing uncertainties for the stock market in the near future,” said Wang Jun, chief analyst at Hua Chuang Securities.

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