logo
Plus   Neg
Share
Email

China Bourse May Reverse Wednesday's Losses

The China stock market on Wednesday snapped the two-day winning streak in which it had surged more than 90 points or 3 percent. The Shanghai Composite Index now rests just above the 3,025-point plateau although it may see a modest recovery on Thursday.

The global forecast for the Asian markets suggests mild upside on sound economic data and a spike in crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished sharply lower on Wednesday following losses from the financial shares and oil and insurance companies, while the properties provided support.

For the day, the index tumbled 33.36 points or 1.09 percent to finish at 3,026.95 after trading between 3,013.93 and 3,065.29. The Shenzhen Composite Index plunged 39.27 points or 2.32 percent to end at 1,656.54.

Among the actives, Industrial and Commercial Bank of China shed 0.71 percent, while Bank of China lost 0.78 percent, China Construction Bank fell 0.86 percent, China Merchants Bank collected 1.24 percent, China Life Insurance climbed 1.24 percent, Ping An Insurance soared 3.31 percent, PetroChina sank 0.77 percent, China Petroleum and Chemical (Sinopec) tumbled 1.51 percent, China Shenhua Energy slid 0.75 percent, Gemdale surged 5.42 percent, Poly Developments spiked 1.69 percent, China Vanke accelerated 1.31 percent and CITIC Securities plunged 3.08 percent.

The lead from Wall Street is positive as stocks opened higher on Wednesday. The major averages gave ground as the day progressed but still finished firmly in the green.

The Dow added 148.23 points or 0.58 percent to 25,702.89, while the NASDAQ gained 52.37 points or 0.69 percent to 7,643.41 and the S&P 500 rose 19.40 points or 0.69 percent to 2,810.92.

The strength on Wall Street reflected a positive reaction to a Commerce Department report showing an unexpected increase in durable goods orders in January. Also, the Labor Department noted a modest increase in producer prices in February.

Oil prices rallied sharply on Wednesday after data showed U.S. crude inventories dropped last week. West Texas Intermediate Crude oil futures for April ended up $1.39 or 2.4 percent at $58.26 a barrel, the highest settlement in four months.

Closer to home, China is scheduled to release a raft of data later this morning, including February figures for fixed asset investment, industrial production, retail sales, unemployment and property investment.

Fixed asset investment is expected to gain 6.0 percent on year, up from 5.9 percent in January. Industrial production is expected to add 5.5 percent, slowing from 6.2 percent in the previous month. Retail sales are tipped to advanced 8.1 percent, slowing from 9.0 percent a month earlier. In January, the jobless rate was 4.9 percent and property investment advanced an annual 9.5 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT