Shares in Shanghai were almost unchanged yesterday after posting
the biggest monthly drop in November since 1994 as losses in
airlines erased gains in finance and real estate shares.
The Shanghai Composite Index, which tracks yuan-denominated A
shares and hard-currency B shares, dipped 0.07 percent, or 3.17
points, to close at 4,868.61 on the first trading day of the
month.
Turnover in the Shanghai market increased slightly to 70 billion
yuan (US$9.49 billion), versus last week's daily average of 65
billion yuan.
The key index tumbled 18.19 percent last month, the biggest
monthly drop in more than 13 years.
"Blue chips such as China Shipping Container Lines Co and China
Pacific Insurance are expected to start trading in the coming days,
which will absorb market liquidity as investors sell shares to buy
new stocks," said Xu Zheng, an analyst from Minsheng Securities Co
Ltd.
Wu Kongyin, analyst from United Securities Co Ltd, expects the
index to bounce back should it fall to 4,770 points.
PetroChina Co, which accounts for more than 20 percent of the
Shanghai index's weighting, declined 3.43 percent to new low of
30.44 yuan.
China Railway Group, the world's third largest construction
company, gained 68.5 percent, or 3.29 yuan, to close at 8.09 yuan
on the first day of its IPO in the Shanghai market.
China Vanke rose 3.11 percent to 32.53 yuan per share and Poly
Real Estate jumped 4.18 percent to close at 71.24 yuan.
Shenzhen Development Bank rallied 6.15 percent to 38.30
yuan.
China Southern Airlines dropped 6.47 percent to 23.98 yuan and
Air China lost 4.77 percent to 22.35 yuan. Shanghai Airlines was
off 1.71 percent to 15.50 yuan and China Eastern Airlines shed 1.3
percent to end at 16.70 yuan.
(Shanghai Daily December 4, 2007)
