Markets close lower as most sectors lose
Chinese stocks closed lower on Wednesday, while transport services and shares related to Hainan Province surged.
At close, the benchmark Shanghai Composite Index was down 0.94 percent at 2,968.52 points, while the smaller Shenzhen Component Index shed 1.78 percent to 11,200.05points. The blue chip CSI300 Index closed 1.33 percent lower to 4,028.43 points.
Turnover on the two major bourses totaled 972.8 billion yuan (US$139.6 billion), compared with the previous session’s 1.08 trillion yuan.
Chinese mainland markets saw a net outflow of 5.37 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.
Most sectors lost, with 2,646 individual shares falling and 1,032 rising. However, transport services and shares related to Hainan Province performed strongly.
The boom in transport, including water transport and air transport, was attributed to the slump in oil prices which will reduce fuel costs.
CITIC Securities said in a note that the fall in oil prices would help reduce transport services providers’ costs by at least 1.5 billion yuan.
On Tuesday, Saudi Arabia said it will increase its crude-oil supply to record highs, raising the stakes in its price war with Russia.
Saudi Aramco, Saudi Arabia’s state-owned oil company said it will increase supplies to 12.3 million barrels a day in April, 300,000 barrels above its maximum capacity, according to Reuters.
The clash of the two oil titans sparked a 25 percent slump in oil prices on Monday and it seems the price war will continue since Saudi Arabia effectively rebuffed Moscow’s overtures for new talks.
In water transport, COSCO Shipping Energy Transportation Co Ltd and China Merchants Energy Shipping Co Ltd hit the 10 percent daily limit.
In civil aviation, China Express Airlines Co Ltd, Hainan Airlines Holding Co Ltd, Juneyao Airlines Co Ltd and Air China Ltd all performed strongly.
The Civil Aviation Administration of China announced a fee reduction for airlines on March 9, supporting airlines with their difficulties amid the epidemic.
Shares related to Hainan Province surged on the news that the tropical island is to roll out plans to revive tourism after the epidemic, including a series of promotional activities to attract travelers.