Chinese stocks easier at midday amid profit-taking
23/9/2008 17:46
Chinese stocks lost ground this morning in a broad-based decline after two
days of strong gains, as investors reacted to overnight losses in the United
States.
However, heavy buying of major blue chips helped keep the main stock
index above 2,200 points.
China National Petroleum Corp (CNPC), a major
state-owned enterprise, said yesterday it had purchased 60 million A-shares of
its Shanghai-listed subsidiary, PetroChina Co Ltd, as a response to the
government's calls to stabilize the stock market. PetroChina is a major index
component.
The benchmark Shanghai Composite Index finished the morning down
21.44 points, or 0.96 percent, at 2,214.97, and the Shenzhen Component Index
fell 321.28 points, or 4.3 percent, to 7,147.79.
Combined turnover shrank to
63.68 billion yuan (US$9.36 billion) from 116.503 billion yuan yesterday
morning. Gains were dwarfed by losses: 54 to 821 in Shanghai and 32 to 712 in
Shenzhen.
Analysts said other negative factors weighed on the market besides
the US market slump, such as the record daily world price rise for crude
oil.
After two days of rising by the daily 10-percent limit, most banks slid
on profit-taking. Among the exceptions were the three major banks, which the
Central Huijin Investment Co, Ltd, the government's investment arm, said it
would buy to bolster their prices.
The Industrial and Commercial Bank of
China gained 3.12 percent to 4.29 yuan, Bank of China rose 0.81 percent to 3.73
yuan and China Construction Bank was up 1.08 percent to 4.66 yuan. Analysts said
the gains indicated that Central Huijin had started its buying
scheme.
However, Bank of Ningbo fell 6.76 percent to 7.73 yuan, Bank of
Beijing went down 6.02 percent to 7.96 yuan, and Pudong Development Bank slipped
6.19 percent to 15.75 yuan.
The coal sector was strong. China Shenhua gained
7 percent to 26.6 yuan, Zhongmei Energy went up 4.49 percent to 11.4 yuan and
Datong Coal Industry was up 3.89 percent to 15.24 yuan.
With China ready to
launch its third manned space flight, Space Sci-Tech soared 8.8 percent to 8.16
yuan, Space Power rose 6.54 percent to 9.61 yuan and Rocket Holding was up 6.39
percent at 9.82 yuan.
Affected by the milk powder scandal, food shares
nose-dived. Shuanghui Development fell by the 10-percent daily limit to 25.65
yuan, Chengde Lulu slid 9.98 percent to 14.52 yuan and Yili sank 9.97 percent to
9.93 yuan.
Tainted baby formula has sickened nearly 53,000 Chinese infants
and killed three, and it has cost the head of the country's food safety
regulator his job.
Xinhua
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