Shanghai stocks fall to nearly 10-month low on decline by consumer firms and also on "fragile" sentiment
Shanghai stocks fell to a nearly 10-month low on Wednesday, dragged by consumer firms due to profit taking while investor sentiment remained “fragile” amid uncertainties over US-China trade, analysts said.
The Shanghai Composite Index lost 1.4 percent to 3,122.29 points, lowest since June 6 last year.
Consumer firms led the loss, with SDIC Zhonglu Fruit Juice Co tumbling by the daily limit of 10 percent to 12.93 yuan (US$2.06) and liquor maker Anhui Kouzi Distillery Co dropping 5.32 percent to 41.30 yuan.
Shen Meng, director of domestic investment bank Chanson & Co, said investor sentiment remained “fragile” amid concerns caused by trade fractions between US and China, especially after the US stock market fell last night, “which made investors worry about the economic outlook.”
By comparison, computer and communications equipment makers continued to climb, with Shenzhen Gongjin Electronics Co surging by the daily 10 percent limit to 7.88 yuan, while Beijing Tricolor Technology Co rose 3.78 percent to 54.09 yuan.