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Mainland stocks end mixed, turnover shrinks

(China Daily/Agencies)
Updated: 2008-08-26 08:34

Mainland stocks closed mixed in very thin trade yesterday. Insurers were strong and Sinopec gained after it reported better-than-expected earnings.

But many metals shares sagged because of weak prices.

The Shanghai Composite Index ended up 0.34 percent at 2413.37 points, off an intra-day high of 2443.99.

But in a sign that investors' confidence remains extremely weak, turnover in Shanghai A shares shrank to 26.8 billion yuan ($3.91 billion), its lowest level since November 2006, from Friday's 36.2 billion yuan.

China Pacific Insurance gained 2.09 percent to 18.05 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.

HK shares post big gain

Hong Kong shares posted their biggest single-day jump in five months yesterday, rising 3.5 percent as most blue chips rebounded following a Wall Street rally.

Though spurred by bargain hunting and short covering, market watchers expect the rally in local shares to stretch a bit further as it follows a 10.3 percent drop on the main index in less than a month. Local shares slipped 2.6 percent on Thursday on fading hopes for the imminent launch of a stimulus plan from China as well as caution ahead of the typhoon-triggered holiday on Friday.

Bucking the broad market trend, shares in Maanshan Iron & Steel tumbled 7.8 percent yesterday after Goldman Sachs cut the stock to sell from buy on concern that steel demand will fall further amid a slowdown in property construction.

Trade sources said China's Baoshan Iron & Steel, the listed arm of the country's biggest steel mill, had cut fourth quarter sales prices for cold-rolled steel products as the demand outlook weakens in China's key auto and home appliances sector.

Bigger rival Angang Steel also slipped 0.8 percent on a similar cut in its rating by Goldman.

The benchmark Hang Seng Index closed 712.73 points higher at 21104.79 after opening up 1.7 percent.

"The Hang Seng Index may bounce back to 22,000 in the short term, though nothing has changed fundamentally. It fell too much too fast," said Ben Kwong, chief operating officer with KGI Asia.