Stocks end lower after oil prices plunge

Hu Yumo
Brokerages, coal mining and automobile shares were among the biggest losers on Tuesday as main indexes tumbled amid concern about a historic plunge in US crude futures.
Hu Yumo

Shanghai stocks ended lower on Tuesday following a retreat on global markets after US crude futures recorded a historic plunge overnight.

The benchmark Shanghai Composite Index fell 0.9 percent to close at 2,827.01 points.

Brokerages, coal mining and automobile shares were among the biggest losers.

Market sentiment was weak as other markets fell further. US main indexes tumbled on concern about the drop in US oil prices. The Dow Jones Industrials were down more than 2.4 percent. The S&P 500 fell 1.79 percent and Nasdaq retreated 1.03 percent.

US oil prices fell below US$0 for the first time in history on Monday, amid COVID-19 pandemic-related demand shock and oversupply fears. International benchmark Brent dipped as the global coronavirus crisis severely reduced demand for crude. 

Guotai Junan Securities said investors need to be wary in the short term. The company added that investors should seize opportunities in the new infrastructure sector in the A-share market and check companies with good business performance expectations.

Nanjing Securities Co Ltd declined 3.2 percent to 14.41 yuan and Fu Jian Anjoy Foods Co Ltd lost 3.04 percent to 96.51 yuan.

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