Market drops as futures prices ebb
30/6/2005 8:55
Zhang Yi/Shanghai Daily news
Shanghai shares fell
yesterday led by oil and commodity-related companies after futures prices edged
lower on the international markets. "A decline in prices gave investors a
reason to trim holdings amid worries earnings of those firms may be dented,"
said Lu Chengde, a Guosen Securities Co trader. The Shanghai Composite Index,
which covers yuan-denominated A shares and foreign-currency B shares, eased 0.32
percent to 1,104.99. The A-share Index lost 0.33 percent to 1,160.49 and the
B-share Index shed 0.25 percent to 66.22. The Reuters/Jefferies CRB index of
19 commodities lost 2.2 percent on Tuesday, the biggest decline since 1991.
Copper futures on the London Metal Exchange slid 0.6 percent. Jiangxi Copper
Co, China's biggest producer of the metal, lost 0.89 percent to 4.47 yuan (54 US
cents). Crude futures for August delivery in New York fell 3.9 percent on
Tuesday to US$58.20 a barrel, the biggest drop in eight weeks, on speculation
that fuel supplies increased. Sinopec Shanghai Petrochemical, China's largest
maker of ethylene, slipped 2.89 percent to 3.69 yuan. Sinopec Yizheng Chemical
Fibre Co, the country's largest chemical fiber maker, tumbled 4.74 percent to
2.41 yuan. Bucking the downside, Baoshan Iron & Steel Co, the listed unit
of China's biggest steelmaker, increased 2.86 percent to 5.03 yuan.
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