Stocks fall on signs of tighter bro­ker­age lend­ing

The China Post - - WORLD BUSINESS -

Chi­nese stocks fluc­tu­ated wildly Thurs­day on signs of a fur­ther tight­en­ing up on lend­ing prac­tices at bro­ker­ages, while other world bench­marks sagged as in­vestors awaited the out­come of Greece’s talks with cred­i­tors.

Euro­pean stocks fell in early trad­ing, with France’s CAC-40 down 2 per­cent at 4,932.72 and Ger­many’s DAX fall­ing 1.6 per­cent to 11,233.17. Bri­tain’s FTSE 100 shed 1.4 per­cent to 6,855.74. U.S. stocks were poised to open lower, with Dow fu­tures drop­ping 0.5 per­cent to 18,003.00 and the broader S&P 500 fu­tures fall­ing 0.5 per­cent to 2,106.00.

Key cred­i­tors are meet­ing with Greece’s prime min­is­ter in Brus- sels this week as part of diplo­matic ef­forts to re­solve ne­go­ti­a­tions over bud­get re­forms it needs to carry out in or­der to get ac­cess to bailout loans. In­vestors are hop­ing both sides will be able to come to a deal and avert a fi­nan­cial melt­down for the debt-stricken coun­try.

Hong Kong stocks ended 0.38 per­cent lower. The bench­mark Hang Seng In­dex slipped 105.58 points to close at 27,551.89 on turnover of HK$195.23 bil­lion (US$25.19 bil­lion).

In Hong Kong, Dig­i­tal Domain Hold­ings, a ma­jor­ity stake­holder in a Hol­ly­wood vis­ual ef­fects com­pany, sank 14.3 per­cent to HK$1.08, fol­low­ing a more than 40 per­cent plunge Wed­nes­day.

In main­land the bench­mark Shang­hai Com­pos­ite In­dex added 0.76 per­cent, or 37.12 points, to 4,947.10 — the high­est since Jan­uary 2008 — on turnover of 1.1 tril­lion yuan (US$179.8 bil­lion). The mar­ket reversed ear­lier losses that saw it plunge as much as 5.35 per­cent.

The Shen­zhen Com­pos­ite In­dex, which tracks stocks on China’s sec­ond ex­change, lost 0.58 per­cent, or 17.71 points, to 3,023.70 on turnover of 933.8 bil­lion yuan.

Chi­nese shares slumped in early af­ter­noon trad­ing af­ter Golden Sun Se­cu­ri­ties on Thurs­day said it would no longer al­low shares on the techrich ChiNext in­dex to be used to for mar­gin trad­ing — through which in­vestors bor­row money to trade stocks — Bloomberg News said.

Mar­gin trad­ing has been the key force be­hind an ex­tra­or­di­nary surge in main­land stocks, which have risen more than 120 per­cent in Shang­hai in a year.

Banks led the gains in Shang­hai. ICBC rose 2.69 per­cent to 5.34 yuan while China Con­struc­tion Bank jumped 4.06 per­cent to 6.92 yuan.

Elec­tron­ics com­pa­nies fell in Shen­zhen. Sino Wealth Elec­tronic tum­bled 8.12 per­cent to 30.99 yuan while Guang­dong Elling­ton Elec­tron­ics Tech­nol­ogy fell 7.09 per­cent to 38.63 yuan.

Syd­ney tum­bled 1.42 per­cent, or 79.30 points, to 5,504.30 for a fourth straight loss.

Tokyo was marginally higher, adding 14.68 points to 20,488.19 and Seoul edged up 0.47 per­cent, or 9.70 points, to 2,072.86.

In Ja­panese cur­rency trade Thurs­day the dollar was at 124.33 yen com­pared with 124.23 yen in New York, and well up from 123.90 yen in Tokyo ear­lier Wed­nes­day.

Gold fetched US$ 1,183.30 com­pared with US$1,189.20 late Wed­nes­day. In other mar­kets: — Welling­ton rose 0.11 per­cent, or 6.74 points, to 5,865.44.

Con­tact En­ergy was up 0.33 per­cent at NZ$6.08 and Spark fell 1.21 per­cent to NZ$2.855.

— Manila closed 0.11 per­cent, or 8.02 points, lower at 7,553.65.

Ayala Corp was down 1.16 per­cent at 767 pe­sos and Ayala Land fell 0.64 per­cent to 39.10 pe­sos but Manila Elec­tric jumped 2.57 per­cent to 287 pe­sos.

— Bangkok closed up 0.60 per­cent, or 8.83 points, to 1,490.90.

Kasikorn Bank rose 2.05 per­cent to 199.00 baht, while oil com­pany PTT fell 0.88 per­cent to 337.00 baht.

— Jakarta ended down 0.68 per­cent, or 34.68 points, at 5,095.82.

In­done­sia-based oil palm com­pany Dharma Satya Nu­san­tara gained 2.44 per­cent to 4,200 ru­piah, while In­done­sia-based coal miner Indo Tam­bangraya Me­gah fell 4.11 per­cent to 12,825 ru­piah.

— Kuala Lumpur closed down 0.44 per­cent or 7.69 points, at 1,741.48.

Hong Leong Fi­nan­cial Group rose 1.79 per­cent to 15.90 ring­git, and Kuala Lumpur Ke­pong gained 1.43 per­cent to 22.70 ring­git, but IOI Corp. lost 2.44 per­cent to end at 4.00 ring­git.

— Sin­ga­pore fell 0.14 per­cent, or 4.84 points, to 3,345.00.

Oversea-Chi­nese Bank­ing Cor­po­ra­tion fell 0.40 per­cent to SG$10.00 while Sin­ga­pore Air­lines de­clined 1.46 per­cent to SG$10.84.

— Mumbai fell very marginally by 0.09 per­cent, or 23.78 points, to end at 26,813.42.

Tata Steel fell 2.58 per­cent to 308.25 ru­pees, while Re­liance In­dus­tries rose 1.85 per­cent to 912.50 ru­pees.

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