News Column

Narrow Range Expected For China Stock Market

July 6, 2014

BEIJING (dpa-AFX) - The China stock market on Friday wrote a finish to the four-day winning streak in which it had gathered almost 30 points or 1.5 percent. The Shanghai Composite Index closed just below the 2,060-point plateau, and the market may tick slightly lower again on Monday.

The global forecast for the Asian markets lacks clarity, conviction and catalysts as markets in the United States were closed on Friday for the July 4th holiday. Markets in Europe were mixed on Friday with a downward bias, and the Asian markets also figure to open slightly in the red.

The SCI finished slightly lower on Friday following losses among the port operators and a mixed bag from the financial shares.

For the day, the index fell 3.85 points or 0.19 percent to finish at 2,059.37 after trading between 2,054.22 and 2,065.08 on turnover of 83.6 billion yuan. The Shenzhen Composite Index eased 0.36 points or 0.03 percent to end at 1,113.55 on turnover of 128.6 billion yuan.

Among the actives, Dalian Port plunged by the 10 percent daily limit, while Rizhao Port dropped 9.3 percent, Jiangsu Lianyungang Port retreated 6 percent, Inner Mongolia Yili Industrial Group surged 3.42 percent, China Life Insurance added 0.58 percent and Sinolink Securities fell 1.77 percent.

The lead from the European markets suggests mild consolidation after closing off the week on a down note to finish a three-day rally.

Germany's DAX shed 20.35 points or 0.20 percent to finish at 10,009.08, while London'sFTSE added 0.84 points or 0.01 percent to end at 6,866.05, the CAC 40 in France tumbled 20.90 points or 0.47 percent to finish at 4,468.98 and the Swiss market lost 16.10 points or 0.19 percent to close at 8,678.22.

The markets had moved higher last week, spurred by better than expected U.S. employment data and dovish talk from central banks in the United States and Europe.

But investors took the opportunity to lock in gains by the week's end, unwilling to leave too much money on the table over the weekend.

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Source: dpa-AFX International Compact

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