Chinese stocks closed mixed in very thin trade on Monday. Insurers were strong and oil refiner Sinopec gained after it reported better-than-expected earnings. But many metals shares sagged because of weak product prices. The Shanghai Composite Index ended up 0.34 percent at 2,413.374 points, off an intra-day high of 2,443.990.
But losing stocks in Shanghai outnumbered gainers by 473 to 418, and in a sign that investors' confidence remains extremely weak, turnover in Shanghai A shares shrank to 26.8 billion yuan ($3.9 billion), its lowest level since November 2006, from Friday's 36.2 billion yuan. "Facing uncertainty over policies and worries about an economic slowdown, more and more investors have lost interest in trading," said Cao Xuefeng, analyst at Western Securities.
China Pacific Insurance gained 2.09 percent to 18.06 yuan after reporting a 44 percent jump in first-half net profit. China Life, the biggest insurer, advanced 1.98 percent to 25.24 yuan. Sinopec rose 1.40 percent to 10.13 yuan. It reported an 87 percent plunge in second-quarter earnings to 2.2 billion yuan due to high crude oil prices and caps on state-set fuel prices, but that actually exceeded analysts' consensus forecast of 860 million yuan.
The securities regulator said at the weekend that as part of efforts to support the stock market, it would press listed companies to pay larger dividends and allow institutions to use brokerages as underwriters when selling shares made tradable by the expiry of lock-up periods.
These steps in themselves are not expected to trigger any extended rebound of the market, which remains preoccupied by slowing economic and corporate profit growth. But they did prompt speculation that regulators would soon announce further measures to stimulate the market, possibly including the long-delayed launch of stock futures trade.
Shares in companies which are related to the futures industry, or which have major stakes in futures brokerages, were strong on Monday. China CIFCO Investment rose 3.48 percent to 21.38 yuan. "Investors are expecting more positive policy news could come out after the Olympics," said Zhang Yanbing, analyst at Zheshang Securities. "But the small turnover suggests investor confidence and sentiment are still weak."
Shandong Gold sank 4.84 percent to 35.39 yuan after Friday's pull-back of global gold prices. Steel shares slid on signs of a continued downtrend in domestic steel prices. Baoshan Iron & Steel has cut its fourth-quarter sales prices for cold-rolled steel products, trade sources told Reuters on Monday. Its shares lost 1.04 percent to 6.69 yuan. Several shares outperformed after reporting strong first-half earnings.
Datong Coal Industry gained 2.22 percent to 15.63 yuan after saying its first-half net profit jumped 203 percent from a year earlier; it had previously estimated interim profit would rise at least 155 percent. Qingdao Haier Refrigerator rose 3.24 percent to 9.88 yuan after saying its net profit grew 46 percent, with growth in domestic sales eclipsing a slump in overseas sales, and margins in almost all of its product lines improving.
Comments
Comments are closed.