News Column

China Stock Market Draws Soft Open

August 28, 2014

BEIJING (dpa-AFX) - The China stock market turned south again on Thursday, one day after it had ended the two-day slide in which it had retreated almost 35 points or 1.5 percent. The Shanghai Composite Index settled just above the 2,195-point plateau, and the market may take further damage on Friday.

The global forecast for the Asian markets is negative, thanks to renewed geopolitical concerns in the Ukraine that offset positive U.S. economic data. The European and U.S. markets were down and the Asian markets figure to follow suit.

The SCI finished modestly lower on Thursday following losses among the financial shares and the property stocks.

For the day, the index lost 13.65 points or 0.62 percent to finish at 2,195.82 after trading between 2,194.86 and 2,219.47on turnover of 109.27 billion yuan. The Shenzhen Component Index tumbled 97.54 points or 1.24 percent to end at 7,743.54 on turnover of 129.9 billion yuan.

Among the actives, Bank of Beijing dropped 2.1 percent, while China Everbright Bank lost 1.9 percent, China Vanke fell 1.5 percent and Hua Yuan Property shed 1.6 percent.

The lead from Wall Street suggests consolidation as stocks finished lower on Thursday, with the S&P 500 snapping a three-session win streak to end below 2,000.

The S&P 500 lost 3.38 points or 0.2 percent to finish at 1,996.74, falling from record highs. The Dow Jones Industrial Average closed down 42.44 points, or 0.3 percent, at 17,079.57, while the NASDAQ declined 11.93 points, or 0.3 percent, to 4,557.69.

Geopolitical tensions and economic weakness in Europe had investors on edge as Ukraine's government has accused Russia of invading the country along its south-eastern border.

In economic news, revised figures from the Commerce Department showed that Gross Domestic Product rose 4.2 percent in Q2. Also, the number of Americans filing first-time unemployment benefits edged down last week.

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Source: dpa-AFX International Compact

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