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China's shares edged down yesterday, but selected energy stocks surged on reports of an oil discovery in the northeast, with oil pipeline operator Long Champ jumping its 10 percent limit.
Shanghai's hard currency B share index fell 0.41 percent to end at 120.359 points, while Shenzhen's slipped 1.31 percent to 196.46, as investors took profits in some stocks that had rallied over the past two sessions, brokers said.
Turnover on the B share markets was US$22.8 million in Shanghai, rising 30 per cent, and HK$97.5 million (US$12.5 million) in Shenzhen, down 27.3 per cent.
Petroleum Long Champ (Group) Co was the star performer after state media said Chinese specialists had found an estimated 25 million tons of crude oil reserves in Northeast China's Heilongjiang Province. The news helped prop up oil shares, brokers said.
Also bucking the downtrend were telecoms shares such as gear makers Eastern Communications Co and Shanghai Posts & Telecoms Co.
"Some investors ignored the indices' drop and began to invest in stocks such as telecoms, showing confidence in the future trend," said Chen Yuliang, a Tiantong Securities analyst.
Eastcom was the biggest B share gainer in Shanghai with a rise of 1.88 percent to US$0.76.
Shanghai Post & Telecoms' A shares also brushed up against their 10 percent daily limit to end at 14.0 yuan (US$1.69) each.
But overall sentiment remained fragile for markets trapped in a 19-month downtrend, pummelled by poor earnings, a steady stream of share offers, and worries over corporate health sparked by a crackdown on shares market corruption.
"Punters were very cautious after such a long downtrend and some of them began to sell shares that had risen in previous days to take a profit," said Shanghai Securities analyst Zhang Jun.
Construction materials maker Linuo Industry Co, which had climbed 15 percent earlier this week, slumped 2.71 per cent to finish the day at 9.32 yuan (US$1.13).
The benchmark Shanghai's composite index, which groups A and B shares now open to domestic and select foreign investors, fell 0.31 percent to 1,411.719, while the figure for the Shenzhen market ended at 2868.42, down 0.35 percent.
The turnover on the Shanghai market was 5.36 billion yuan (US$647 million) and the transaction on the Shenzhen bourse closed at 4.17 billion yuan (US$504 million).
(China Daily December 19, 2002)
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