Stocks fall as investors cash in gains

Hu Yumo
Shanghai shares closed slightly down on Wednesday as investors locked in three days of gains.
Hu Yumo

Shanghai shares ended slightly lower today, led by declines of electronics firms and brokerages as investors locked in profits from earlier gains. The Shanghai Composite Index closed down 0.07 percent at 2,903.65 points.

Electronics firms, telecommunications enterprises and financial shares were among the biggest losers. The electronics sector lost 1.30 percent and telecommunications 0.39 percent, according to Chinese financial data provider Wind Information Co.

Market sentiment was weak after the index posted three days of gains from last Friday to Tuesday. The Index jumped 1.07 percent on Monday and 1.61 percent on Tuesday amid positive economic data including urban employment and steady profit growth for state-owned enterprises.

"Shares of banks and infrastructure companies have performed well recently. After three consecutive days of gains, the Shanghai Composite Index retreated and investors are advised to continue tracking high-quality shares and adapt to the changes in the market," Xiangcai Securities said in a note.

Liu Mingdi, head of China equity research at Nomura, said A-listed companies are expected to perform well in August after releasing strong half-year results this month.

Liu suggested investors buy into health care, energy, property, technology and telecommunications.

Industrial Securities Co Ltd lost 2.84 percent to 5.13 yuan (76 US cents) and Shenzhen Kinwong Electronic Co Ltd fell 2.48 percent to 55.35 yuan.

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