China stocks slip 0.7pc, volume at 18-month low
Tuesday, 29 June 2010
SHANGHAI, June 28 (Reuters): China's key stock index ended 0.7 per cent lower Monday while volume shrank to an 18-month low, as tight liquidity conditions brought about by Agricultural Bank of China's looming stock offering starved the market of momentum for near-term gains.
The Shanghai Composite Index ended the day at 2,535.3 points, slipping for a fourth day in a row after a rally at the start of last week prompted by optimism over the potential for the yuan to appreciate after the central bank ended its de facto peg to the dollar.
China's stock market remains one of the world's worst performers this year, down nearly 23 per cent after authorities unleashed policies to ease speculation in the red-hot property sector.
The index is down over 18 per cent on the quarter. "There are many uncertain factors in the market, including AgBank's listing," said Chen Shaodan, an analyst at Stockfly Securities in Beijing. "The G20 meeting also did not offer any heart-stirring news."
Volume remained precariously thin, falling to 45 billion yuan ($6.6 billion) from Friday's 51 billion yuan, the lowest since the end of December 2008.
The Shanghai Composite Index ended the day at 2,535.3 points, slipping for a fourth day in a row after a rally at the start of last week prompted by optimism over the potential for the yuan to appreciate after the central bank ended its de facto peg to the dollar.
China's stock market remains one of the world's worst performers this year, down nearly 23 per cent after authorities unleashed policies to ease speculation in the red-hot property sector.
The index is down over 18 per cent on the quarter. "There are many uncertain factors in the market, including AgBank's listing," said Chen Shaodan, an analyst at Stockfly Securities in Beijing. "The G20 meeting also did not offer any heart-stirring news."
Volume remained precariously thin, falling to 45 billion yuan ($6.6 billion) from Friday's 51 billion yuan, the lowest since the end of December 2008.