News Column

Little Movement Seen For China Stock Market On Monday

August 24, 2014

BEIJING (dpa-AFX) - The China stock market on Friday snapped the two-day slide in which it had retreated almost 15 points or 0.7 percent. The Shanghai Composite Index finished just above the 2,240-point plateau, and now the market is likely to be rangebound on Monday.

The global forecast for the Asian markets suggests mild selling pressure following mostly higher performances last week. The European markets finished lower on Friday and the U.S. bourses were mixed but little changed - and the Asian markets figure to split the difference.

The SCI finished modestly higher on Friday following gains from the financial shares, port operators and the tourism stocks.

For the day, the index advanced 10.35 points or 0.46 percent to finish at 2,240.81 after trading between 2,225.27 and 2,243.30 on turnover of 140.3 billion yuan. The Shenzhen Component Index climbed 48.69 points or 0.61 percent to end at 8,059.40 on turnover of 173.1 billion yuan.

Among the actives, Yingkou Port, Tangshan Port Group and Beijing Jingxi Tourism Development all surged by the 10 percent daily limit, while Huangshan Tourism Development jumped 1.07 percent, Industrial and Commercial Bank of China added 0.29 percent and Bank of China collected 0.74 percent.

The lead from Wall Street provides little clarity as stocks showed a lack of direction on Friday before closing roughly flat. A muted reaction to a highly anticipated speech by Federal Reserve Chair Janet Yellen contributed to the lackluster performance.

The NASDAQ inched up 6.45 points or 0.1 percent to 4,538.55, while the Dow dipped 38.27 points or 0.2 percent to 17,001.22 and the S&P 500 edged down 3.97 points or 0.2 percent to 1,988.40. For the week, the Dow jumped 2 percent, while the NASDAQ and the S&P 500 surged 1.6 percent and 1.7 percent, respectively.

The choppy trading followed Yellen's speech at the Kansas City Fed's economic policy symposium in Jackson Hole, Wyoming. Her remarks did not provide any meaningful hints about the outlook for interest rates and largely focused on the difficulty in judging the remaining degree of slack in the labor market.

The Fed chief said that the central bank could go either way with regard to interest rates. While Yellen said an increase in rates could come sooner than expected if progress on inflation and the labor market occurs more rapidly than anticipated, she also said the future path of rates could be more accommodative if the economic performance turns out to be disappointing.

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Source: dpa-AFX International Compact

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