Shanghai shares see worst month since early 2016
Reuters|
Feb 28, 2018, 01.56 PM IST
SHANGHAI: China stocks extended losses on Wednesday, with the benchmark Shanghai index recording its worst month since early 2016, as weak factory data rekindled worries about the country's economic health amid fears of faster rate hikes in the United States.
For the month, Shanghai Composite Index dropped 6.4 per cent, its worst monthly fall since January 2016, while CSI300 lost 5.9 per cent, its biggest monthly slide since late 2016.
Growth in China's manufacturing sector in February slowed more than expected to the weakest in over 1-1/2 years as the Lunar New Year holidays disrupted business activity and tougher pollution rules curtailed factory output.
"Although a recovery looks possible in the short-run as the anti-pollution campaign winds down, the risk is still that the economy fares worse this year than is generally expected," said Julian Evans-Pritchard, senior China Economist at Capital Economics.
Sentiment was already sour after Fed's Jerome Powell gave an upbeat view of the U.S. economy on Tuesday and said recent data had strengthened his confidence on inflation.
At the close, the Shanghai Composite index was down 1 per cent at 3,259.41
The blue-chip CSI300 index was down 0.87 per cent, with its financial sector sub-index lower by 1.35 per cent, the consumer staples sector down 2.56 per cent, the real estate index up 0.25 per cent and healthcare sub-index down 0.37 per cent.
The smaller Shenzhen index ended up 0.16 per cent and the start-up board ChiNext Composite index was higher by 0.58 per cent.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.02 per cent while Japan's Nikkei index closed down 1.44 per cent.
At 07:03 GMT, the yuan was quoted at 6.3274 per U.S. dollar, 0.16 per cent weaker than the previous close of 6.317.
The largest per centage gainers in the main Shanghai Composite index were CSSC Science & Technology Co Ltd, up 10.03 per cent, followed by Daheng New Epoch Technology Inc , up 9.97 per cent, and Datang Telecom Technology Co Ltd, up 9.95 per cent.
Top per centage losers in the Shanghai index were Aluminum Corp of China Ltd, down 9.92 per cent, followed by Shandong Lukang Pharmaceutical Co Ltd, down 6.91 per cent, and Henan Ancai Hi-tech Co Ltd, down 5.22 per cent.
So far this year, the Shanghai stock index is down 1.4 per cent and the CSI300 is down 0.2 per cent this year, while China's H-share index listed in Hong Kong is up 2.9 per cent. Shanghai stocks have declined 6.4 per cent this month.
About 15.10 billion shares were traded on the Shanghai exchange, roughly 72.2 per cent of the market's 30-day moving average of 20.91 billion shares a day. The volume in the previous trading session was 17.42 billion.
As of 07:05 GMT, China's A-shares were trading at a premium of 27.74 per cent over the Hong Kong-listed H-shares. The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 15.05 as of the last full trading day while the dividend yield was 1.9 per cent.
So far this week, the market capitalisation of the Shanghai stock index has risen by 1.17 per cent to 29.50 trillion yuan.
For the month, Shanghai Composite Index dropped 6.4 per cent, its worst monthly fall since January 2016, while CSI300 lost 5.9 per cent, its biggest monthly slide since late 2016.
Growth in China's manufacturing sector in February slowed more than expected to the weakest in over 1-1/2 years as the Lunar New Year holidays disrupted business activity and tougher pollution rules curtailed factory output.
"Although a recovery looks possible in the short-run as the anti-pollution campaign winds down, the risk is still that the economy fares worse this year than is generally expected," said Julian Evans-Pritchard, senior China Economist at Capital Economics.
Sentiment was already sour after Fed's Jerome Powell gave an upbeat view of the U.S. economy on Tuesday and said recent data had strengthened his confidence on inflation.
At the close, the Shanghai Composite index was down 1 per cent at 3,259.41
The blue-chip CSI300 index was down 0.87 per cent, with its financial sector sub-index lower by 1.35 per cent, the consumer staples sector down 2.56 per cent, the real estate index up 0.25 per cent and healthcare sub-index down 0.37 per cent.
The smaller Shenzhen index ended up 0.16 per cent and the start-up board ChiNext Composite index was higher by 0.58 per cent.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.02 per cent while Japan's Nikkei index closed down 1.44 per cent.
At 07:03 GMT, the yuan was quoted at 6.3274 per U.S. dollar, 0.16 per cent weaker than the previous close of 6.317.
The largest per centage gainers in the main Shanghai Composite index were CSSC Science & Technology Co Ltd, up 10.03 per cent, followed by Daheng New Epoch Technology Inc , up 9.97 per cent, and Datang Telecom Technology Co Ltd, up 9.95 per cent.
Top per centage losers in the Shanghai index were Aluminum Corp of China Ltd, down 9.92 per cent, followed by Shandong Lukang Pharmaceutical Co Ltd, down 6.91 per cent, and Henan Ancai Hi-tech Co Ltd, down 5.22 per cent.
So far this year, the Shanghai stock index is down 1.4 per cent and the CSI300 is down 0.2 per cent this year, while China's H-share index listed in Hong Kong is up 2.9 per cent. Shanghai stocks have declined 6.4 per cent this month.
About 15.10 billion shares were traded on the Shanghai exchange, roughly 72.2 per cent of the market's 30-day moving average of 20.91 billion shares a day. The volume in the previous trading session was 17.42 billion.
As of 07:05 GMT, China's A-shares were trading at a premium of 27.74 per cent over the Hong Kong-listed H-shares. The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 15.05 as of the last full trading day while the dividend yield was 1.9 per cent.
So far this week, the market capitalisation of the Shanghai stock index has risen by 1.17 per cent to 29.50 trillion yuan.
