Shanghai stocks end 11-day rally

Shanghai stocks ended an 11-day rally as investors took profit among steel and coal industries, which offset surges in banks and oil companies.

Shanghai stocks snapped an 11-day rally as investors took profit among steel and coal industries, which offset surges in banks and oil companies.

The Shanghai Composite Index lost 0.54 percent to 3,410.49 points, dragged by steel and coal companies, with Xinyu Iron & Steel Co tumbling 7.58 percent to 6.46 yuan (US$1.00) and Baotailong New Materials Co, a coal miner, plummeting 7.55 percent to 8.69 yuan.

Previously, mainland-listed steel companies climbed 6.9 percent while the coal mining sector gained 7.8 percent since December 25.

Chen Guo, chief analyst at Essence Securities, said investors have been retreating from shares generating “short-term profits,” shifting toward blue-chips to retain constant returns after the 11-day rebound.

Banks and oil companies kept climbing amid policies to tighten regulations in the banking industry and a surge in crude prices, but most industries have fallen today “amid a bout of fund retreat,” Chen said.


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