Wednesday, January 21, 2009
AP - 44 SHANGHAI - Chinese shares retreated Wednesday for the first time in four days on dismal corporate earnings forecasts.
The benchmark Shanghai Composite Index ended down 0.5 percent, or 9.09 points, to close at 1985.02. The Shenzhen Composite Index for China's second exchange faded 0.4 percent to 604.57.
Investors were uneasy ahead of the government's release Thursday of new data that will show whether China's economic slowdown is worse than expected.
'Investors are concerned more on those figures than the government's policies right now,' said Zhai Peng, an analyst for Guotai Junan Securities in Shanghai.
China Life Insurance Ltd., the country's biggest life insurer, lost 1.8 percent to 19.92 yuan, after it said 2008 profit would fall more than 50 percent from the 2007 level. Ping An Insurance Ltd. shed 3.2 percent to 29.28 yuan.
Suning Appliance Co., an appliance retailer, tumbled 9.1 percent to 15.88 yuan after cutting its 2008 earnings forecast due to weak demand. Haier Ltd., the world's fourth-largest appliance maker, fell 4.3 percent to 8.74 yuan.
Military contractors jumped after the government said Tuesday it will accelerate its modernization of the People's Liberation Army.
Long March Launch Vehicle Technology Co., maker of equipment for China's military-run space program, jumped 5.9 percent to 10.94 yuan. China Spacesat Co. soared 8.8 percent to 20.34 yuan.
Textile shares rallied after state media said Wednesday the government is drafting a stimulus package for the industry.
Huafang Textile Ltd. surged by the daily limit of 10 percent to 3.30, while Inner Mongolia Erduosi Cashmere Products Ltd. soared 5.3 percent to 9.16 yuan.
In currency markets, China's yuan strengthened to 6.8355 to the U.S. dollar, up from Tuesday's close of 6.83939.
No comments:
Post a Comment