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Chinese shares dip 2.34% on weak heavyweights

(Xinhua)
Updated: 2009-09-22 15:58

Chinese equities ended 2.34 percent lower Tuesday as heavyweights weakened in the afternoon.

The benchmark Shanghai Composite Index lost 69.46 points to finish at 2,897.55.

The Shenzhen Component Index retreated 1.92 percent, or 231.75 points, to finish at 11,813.46.

Combined turnover fell slightly to 222.77 billion yuan ($32.76 billion) from 231.99 billion yuan ($33.99 billion) on the previous trading day.

Losers outnumbered gainers by 747 to 114 in Shanghai and 637 to 125 in Shenzhen.

Sinopec, Asia's largest refiner, dropped 3.16 percent to close at 11.33 yuan, and PetroChina, the nation's biggest oil producer, fell 2.18 percent to 12.99 yuan.

Coal producers also fell, as crude prices may dampen demand for coal as an alternative to oil products. China Shenhua, the country's largest coal producer, plummeted 3.97 percent to 31.94 yuan.

Steel makers also led losses, with the whole sector down 3.73 percent.

Related readings:  Sinopec's net profit up 332.8% in H1  Shenhua to boost coal output 100% in 5 yrs  Steel consumption from two sectors to hit 28m tons  Midea roadshow takes off amid market gloom  China's Kweichow Moutai to invest $2.9b to double output

Handan Iron and Steel Ltd, Tangshan Iron and Steel Co, and Chengde Xinxin Vanadium and Titanium Co each plunged more than five percent, after they resumed trading Tuesday following the approval of the merger of these three makers. Their stocks were suspended from trading starting September 17.

Stocks of the consumer spending sector, such as food producers and home appliance makers, however, rose on expectation of holiday sales during the forthcoming eight-day National Day holidays from October 1 to October 8.

Guangdong Midea Electric Appliances, one of the country's leading home appliance makers, advanced 1.59 percent to 17.94 yuan.

China Kweichow Moutai Distillery Co, the country's leading liquor maker, added 2.52 percent to finish at 169.59, after the firm said Monday it would invest 20 billion yuan to nearly double annual output within five to 10 years.

Analysts with Everbright Securities said market sentiment would remain cautious before the National Day holiday, and the market may continue to see corrections as investors wait for new stimulus.