Stocks News
- Shares down sharply on Wall Street losses
Date: 9-Nov-2007 Sources: (Shenzhen Daily)
LOSSES on Wall Street overnight and concerns over possible further tightening measures dragged China shares down sharply Thursday, with the benchmark index posting it largest daily decline in four months.
The benchmark Shanghai Composite Index ended down 4.85 percent at 5,330.02. It was the index's biggest one-day drop since Jul. 5, when it fell 5.3 percent. Analysts said the market is likely to remain weak, with support for the Shanghai Composite Index at the psychological 5,000 level in coming days. The Shenzhen Composite Index fell 4.2 percent to 1,321.05.
'The sharp decline in ADRs in the United States has exerted selling pressure on their counterpart shares listed here,'said Chen Huiqin, an analyst at Huatai Securities.
China's large capitalized shares ended down sharply after American Depositary Receipts (ADRs) plunged overnight amid broad-based losses in U.S. stocks.
China Southern Airlines ended down 9.8 percent at 19.26 yuan (US$2.59) after its ADRs slumped 6.9 percent to US$56.95, China Petroleum & Chemical ended down 7.1 percent at 22.49 yuan after its ADRs fell 2.3 percent to US$141.55 and PetroChina dropped 5.5 percent to 38.19 yuan after its ADRs lost 7.2 percent at US$212.80.
Concerns about overvaluation of Chinese shares also prompted investors to pare their holdings.
'Sentiment is becoming cautious again as the weekend draws near and some institutions are choosing to cut their positions on tightening concerns,'said Simon Wang, a strategist at Xiangcai Securities.
Investors are worried the government may hike interest rates, or announce other tightening measures over the weekend as part of efforts to cool economy.
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