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Shanghai's stocks continued Tuesday's slump and tumbled more than 1 percent
to the lowest level in nearly 15 months yesterday, the last trading day of the
first half, on weak market sentiment due to concerns that a possible spread of
the European debt crisis will dampen economic recovery.
The Shanghai Composite Index lost 1.18 percent, or 28.68 points, to close at
2,398.37. Turnover was 51.2 billion yuan (US$7.5 billion).
The barometer lost a total of 26.8 percent in the first sixth months.
The July contract of the CSI 300 index futures dropped 1.2 percent to 2,579
points.
"Worries of slower economic recovery are the main reason for the recent
slump, and earnings of listed companies may turn out to be worse than expected
and investors should remain cautious," Guoyuan Securities' Kang Hongtao wrote in
a report.
The Federation of Logistics and Purchasing is set to announce the Purchasing
Managers' Index for June today, and market watchers were worried it may fall
from May's 53.8 as economic recovery is still not robust.
The Standard &Poor's 500 index in the United States shed 3.1 percent to
the lowest level in eight months on Tuesday as investors remained cautious about
the negative effect brought by the European debt crisis.
"Although some blue chips are now undervalued, the market lacks momentum and
most institutional investors are unwilling to put capital in the market during
times of uncertainty," Ping An Securities said.
Real estate developers fell as investors fear tighter policies on the market.
Gemdale Corp dropped 1.94 percent to 6.06 yuan. Poly Real Estate Group fell 3.76
percent to 10.23 yuan.
Shanghai Pudong Development Bank sank 1.16 percent to 13.60 yuan. The Bank of
China fell 2.31 percent to 3.39 yuan. The Bank of Communications lost 0.99
percent. |
