Local markets stumble after recent winning streak

Chinese stocks retreated on Monday after the benchmark Shanghai Composite Index snapped a five-day winning streak.

The Shanghai index shed 0.05 percent to close at 3,244.81 points on Monday after touching an intraday low of 3,210.52 points, and the smaller Shenzhen Component Index fell 0.61 percent to 10,351.87 points. The ChiNext, China's Nasdaq-style growth enterprises board, fell 2.12 percent to finish at 1,739.66 points.

Steelmakers and chemical product makers were among the day's major winners, with these sectors gaining 4.64 percent and 3.38 percent, respectively. Companies hitting the 10-percent daily cap included Liuzhou Iron and Steel Co, Hunan Valin Steel Co, Danhua Technology and Anhui Liuguo Chemical Co, to name a few.

Notably, shares of Kweichow Moutai Co closed above 900 yuan (USD$134) for the first time following the release of better-than-expected first-quarter results. The liquor company said in a filing to the Shanghai Stock Exchange on Friday that profit attributable to shareholders jumped about 30 percent year on year in the first three months. Its shares rose 4.07 percent to close at a record 900.2 yuan after hitting an intraday high of 908 yuan.

Looking forward, most brokerages expect the domestic market to remain bullish into April. They advise investors to watch sectors including telecommunications, real estate, infrastructure, computers, semiconductors and the military industry.