logo
Plus   Neg
Share
Email

Lower Open Anticipated For China Bourse

The China stock market on Friday halted the seven-day losing streak in which it had surrendered almost 300 points or 10.2 percent. The Shanghai Composite Index now rests just above the 2,745-point plateau although it's tipped to open in the red again on Monday.

The global forecast for the Asian markets suggests continued consolidation as the coronavirus continues to hammer away at world economies. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The SCI finished sharply higher on Friday thanks to bargain hunting after heavy losses last week - especially among the financials, properties and oil and insurance companies.

For the day, the index gained 43.49 points or 1.61 percent to finish at 2,745.62 after trading between 2,702.49 and 2,751.90. The Shenzhen Composite Index jumped 21.53 points or 1.28 percent to end at 1,704.46.

Among the actives, Industrial and Commercial Bank of China climbed 1.80 percent, while Bank of China collected 1.16 percent, China Construction Bank added 1.77 percent, China Merchants Bank soared 5.90 percent, China Life Insurance advanced 2.39 percent, Ping An Insurance gained 1.75 percent, PetroChina rose 0.61 percent, China Petroleum and Chemical (Sinopec) perked 1.35 percent, China Shenhua Energy was up 0.74 percent, Gemdale accelerated 3.55 percent, Poly Developments surged 3.50 percent and China Vanke gathered 2.26 percent.

The lead from Wall Street is negative as stocks shook off a higher open on Friday and sank into the red as the day progressed, offsetting gains from the previous session.

The Dow shed 913.21 points or 4.55 percent to finish at 19,173.98, while the NASDAQ sank 271.06 points or 3.79 percent to 6,879.52 and the S&P 500 lost 104.47 points or 4.34 percent to end at 2,304.92.

The early strength on Wall Street came on optimism that the relief and support packages announced by global central banks and several governments will help limit the impact of the virus outbreak.

But stocks turned lower in afternoon trade as the virus numbers and economic backlash continued to be worrisome.

Crude oil prices tanked on Friday despite several countries and central banks announcing relief packages to help limit the economic impact of the coronavirus pandemic. West Texas Intermediate Crude oil futures for April ended down $2.69 or 11 percent at $22.53 a barrel on expiration day.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT
>