Stocks News
- Stocks record biggest monthly loss since '94
Date: 5-Dec-2007 Sources: (Shenzhen Daily)
THE mainland's main stock index fell 2.63 percent Friday, led by index heavyweights such as PetroChina, ending November with a loss of 18 percent, its biggest monthly drop since July 1994.
The Shanghai Composite Index closed at 4,871.778 points, after jumping 4.2 percent Thursday in a technical rebound that it failed to sustain.
Market sentiment has been severely undermined by a fall of more than 21 percent in the past six weeks.
PetroChina, the market's largest capitalized stock, was one of the most actively traded shares by volume, dropping 4.6 percent to 31.52 yuan after hitting an intraday low of 31.50 yuan (US$4.26), its lowest since its A shares were listed in Shanghai earlier last month. The Shanghai index has sagged 19 percent since PetroChina's debut. The Shenzhen Composite Index fell 1.7 percent to 1,236.31.
'A reasonable price for PetroChina would be around 27 to 32 yuan,'said Qin Qimin, senior stock analyst at Shenyin & Wanguo Securities. 'More time is needed for PetroChina to find a stable floor.'
Analysts said any future rebound may invite more profit-taking, given the market's weak sentiment.
Investors have been discouraged by tightening monetary policy, authorities' curbs on fund flows into stocks, a heavy supply of new shares, high valuations and sagging foreign stock markets.
Turnover in Shanghai's A-share market fell to 69.1 billion yuan from Thursday's 80.6 billion yuan.
But some analysts doubted there would be further substantial declines.
'After such a steep loss, I really see limited potential for it to fall sharply again,'said Zheng Weigang, senior analyst at Shanghai Securities, adding that the index should be able to find support between 4,500 and 4,700 points.
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