Metal and technology hit market

Shanghai stocks closed lower yesterday as market sentiment dimmed on weak industry profit data.

The Shanghai Composite Index edged down 0.14 percent to close at 2,575.81 points.

Shares of iron and steel providers, non-ferrous metal as well as chemical companies were among the biggest decliners.

Investors also became cautious after China's Ministry of Industry and Information Technology said that the total profit of software and information technology service industry declined 4.6 percent in October compared with the same month last year. This marks the first month of a decline in industry profit.

Shares of iron and steel providers fell after a report from the China Iron and Steel Industry Association stated that pressure on the supply side would remain. In October, China's daily output of crude steel averaged 2.66 million tonnes, a drop of 1.19 percent from the previous month.

The China Iron and Steel Industry Association said that as winter is usually a slow season, local enterprises need to carefully analyze  changes in demand to ensure the steady operation of the market.

Shanghai Shibei Hi-Tech Co Ltd dropped 9.98 percent to 9.20 yuan (US$1.33), Liuzhou Iron and Steel Co Ltd declined 5.67 percent to 6.49 yuan and Guangdong Ellington Electronics Technology Co Ltd fell 6.57 percent to 8.96 yuan.