Stocks News
- Big-caps' loss offsets gains made by small shares
Date: 21-Nov-2007 Sources: (Xinhua Online)
BEIJING, Nov. 20 -- Heavyweight stocks, including PetroChina Co, dragged Shanghai's main index slightly down yesterday on high-valuation concerns, although most shares on Shanghai bourse rose.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, lost 0.87 percent to end at 5,269.82. But gainers outnumbered losers 738 to 115.
In its first day as a component stock of the benchmark, PetroChina lost 1.93 percent to 38.07 yuan (5.14 U.S. dollars). The stock, whose every one percentage-point rise or fall can lead to the key index moving over 10 points, had tumbled more than 20 percent from its highest level on its trading debut early this month on fears that it is overvalued.
Other big caps also fell, with Industrial and Commercial Bank of China down 1.46 percent at 8.12 yuan. Ping An Insurance (Group) Co of China was off 3.15 percent at 118.18 yuan and China Life Insurance Co ended 4.12 percent lower at 62.66 yuan.
'The weakness in heavyweights helped channel some capital into the small caps,' said Chen Huiqin, a Huatai Securities analyst.
'The central bank chief's comment on interest rate also helped ease some market worries.'
People's Bank of China Governor Zhou Xiaochuan said in South Africa on Sunday he's comfortable with the current level of interest rate, indicating the central bank may not raise the rate immediately. The market had expected a rate hike to be announced as early as the past weekend after a slew of strong macro economic data was released last week.
Shanghai Zhenhua Port Machinery Co gained 2.85 percent to 23.8 yuan after the container crane maker said it had won a 606-million-yuan deal from a domestic port.
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