Most Chinese Stocks Drop After Indexes Advance to 10-Week High Most Chinese stocks declined after benchmark indexes surged to a 10-week high yesterday. Drugmakers and technology shares dropped, while rare earth producers and port operators rallied. Yonyou Software led declines for technology companies, the best-performing industry group in 2013. A measure of health-care companies pared this year’s gains to 23 percent, dragged down by Kangmei Pharmaceutical Co.’s 1.6 percent loss. Shanghai International Port (Group) Co. surged 9.1 percent, extending a 93 percent gain since the State Council approved the city’s free-trade zone plan on Aug. 22. Rising Nonferrous Metals Share Co. paced a rally for rare earth producers. Two stocks dropped for every one that gained on the Shanghai Composite Index (SHCOMP), which was little changed at 2,122.44 at 1:01 p.m. The measure changed directions at least eight times after rising 1.2 percent yesterday on comments from Premier Li Keqiang that he’s confident the country will achieve this year’s economic goals. “The market isn’t doing much today because it’s digesting yesterday’s gains but sentiment’s still positive,” said Xu Shengjun, analyst at Jianghai Securities Co. in Shanghai. “Economic data doesn’t seem to pose a problem so there are fewer risks now.” The Shanghai index has climbed 8.9 percent since reaching this year’s low on June 27, spurred by signs the economy is stabilizing. An official report released over the weekend showed a manufacturing gauge climbing to a 16-month high in August. Data yesterday showed the government’s non- manufacturing PMI at 53.9 in August, above the level that indicates expansion. HSBC Holdings Plc and Markit Economics’ services gauge rose to 52.8 last month from July’s 51.3, a report today showed. bloomberg/news/2013-09-04/china-stock-index-futures-drop-after-index-jumps-to-10-week-high.html
Posted on: Wed, 04 Sep 2013 06:14:59 +0000