Shang­hai shares end the past week lower

Global Times US Edition - - BIZMARKETS -

Com­mod­ity stocks dragged down Chi­nese main­land ma­jor in­dexes Fri­day, with Shang­hai shares end­ing last week lower.

Mar­ket sen­ti­ment was in part damp­ened by a slew of dis­ap­point­ing data that showed China’s econ­omy is likely to lose some mo­men­tum.

Fixed-as­sets in­vest­ment grew 7.8 per­cent yearon-year in the first eight months of this year, mark­ing the slow­est pace in about 18 years.

The bench­mark Shang­hai Com­pos­ite Index lost 0.53 per­cent to close at 3,353.62 points on Fri­day. The smaller Shen­zhen Com­po­nent Index closed down 0.07 per­cent at 11,063.1 points.

The com­bined turnover on the two bourses shrank to 565.5 bil­lion yuan ($86.5 bil­lion) from 586.3 bil­lion yuan the pre­vi­ous trad­ing day.

Over the past week, the CSI300 index rose 0.1 per­cent. The Shang­hai index lost 0.3 per­cent.

Hav­ing seen a strong rally this year thanks to the coun­try’s eco­nomic re­cov­ery, cycli­cal stocks were un­der sell­ing pres­sure.

Com­mod­ity shares in­clud­ing non­fer­rous met­als, steel and coal led the day’s losses, with an index track­ing raw ma­te­ri­als fall­ing 1.7 per­cent but still ris­ing about 31 per­cent so far this year. For in­stance, Shanxi Xis­han Coal and Elec­tric­ity Power fell 5.98 per­cent at 10.84 yuan per share Fri­day.

Some an­a­lysts said that the sell-off is over­done, as ma­jor re­sources com­pa­nies are ex­pected to con­tinue ben­e­fit­ting from China’s tougher rules on pol­lu­tion.

The A shares will gain mo­men­tum in the long run, while in­vestors’ profit-tak­ing may put some pres­sure on the mar­ket in the short term, ac­cord­ing to Guo­tai Ju­nan Se­cu­ri­ties.

Ma Wenyu, a strate­gist at Shanxi Se­cu­ri­ties, sug­gested in a Reuters report that in­vestors should seek bar­gains in un­der­val­ued stocks from sec­tors like steel, rare earth and alu­minum.

Weak­ness in re­sources shares was off­set by strength in real es­tate where ma­jor play­ers saw their shares jump Fri­day. Wo­long Real Es­tate Group, for in­stance, closed up 7.41 per­cent.

An index that tracks prop­erty shares ad­vanced 6.2 per­cent over the past week, sup­ported by data show­ing per­for­mance in the sec­tor snapped back last month de­spite gov­ern­ment curbs.

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