Stocks take a hit as inflation concerns bite
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An investor at a brokerage in Huaibei, Anhui province. The Shanghai Composite Index slipped 0.06 percent to 2946.71 on Thursday. Woo He / For China Daily |
SHANGHAI - Stocks on the Chinese mainland fell for the first time in five days on concerns that a surge in commodity prices will spur inflation and curb earnings growth.
Air China Ltd led declines for transport companies on the prospect that rising fuel costs will hurt profit and stoke inflation that exceeded government targets in the first two months.
Yanzhou Coal Mining, the best-performing energy stock in the past month, lost 1.7 percent. The market's decline was limited as PetroChina Ltd rose to a two-week high on an improving outlook for earnings as oil prices traded near 30-month highs.
"Imported inflation pressure is still there and the government's tightening measures may trigger concerns about slowing economic growth," said Zhang Kun, a strategist at Guotai Junan Securities Co in Shanghai. "That'll hold back a rebound."
The Shanghai Composite Index slipped 0.06 percent to 2946.71 at the 3 pm close on Thursday. The CSI 300 Index slid 0.42 percent to 3251.36.
Air China dropped 1.15 percent to 11.17 yuan ($1.70). China Southern Airlines Co slipped 0.98 percent to 8.12 yuan.
China Shenhua Energy Co slid 0.97 percent to 28.47 yuan and Yanzhou Coal lost 1.7 percent to 32.44 yuan. Shenhua has gained 10 percent over the past month, while Yanzhou Coal jumped 18 percent. A gauge of energy producers has rallied 4.7 percent over the past month in the CSI 300, the most among the 10 industry groups.
PetroChina surged for a fourth day, rising 1.2 percent to 11.93 yuan. PetroChina is scheduled to report earnings on April 27, according to data compiled by Bloomberg.
Hong Kong stocks rose on Thursday, sending the benchmark Hang Seng Index to its highest level in almost two weeks.
The Hang Seng Index rose 0.39 percent to 22915.28 in Hong Kong.
The Hang Seng Index Volatility Index, the benchmark gauge for Hong Kong stock options, fell 1.6 percent to 19.05, indicating that options traders are expecting a swing of 5.5 percent in the next 30 days.
Bloomberg News
(China Daily 03/25/2011 page17)
