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Stocks drop for 2nd day

(Shanghai Daily)
Updated: 2007-03-30 13:32

Mainland's stocks fell for a second day. Industrial & CommercialBank of ChinaLtd led lenders lower on concern recent gains were excessive.

Baoshan Iron & Steel Co paced gains among steelmakers ahead of the release of the company's earnings.

"Bank valuations are relatively high and some investors may start taking profits," said Ma Jun, who manages the equivalent of US$100 million at E Fund Management Co in Guangzhou,Guangdongprovince. "Baoshan Steel will deliver some good earnings figures as steel producers have raised prices."

TheShanghaiComposite Index, which tracks the bigger of domestic stock exchanges, fell 0.9 percent to 3169.65. The Shenzhen Composite Index, which covers the smaller one, lost 0.3 percent to 818.34.

ICBC, the nation's biggest listed lender, fell 0.11 yuan (1.4 US cents), or 2 percent, to 5.48 yuan, after surging 8.3 percent over the past two days. The stock's 14-day relative strength index, a moving average based on whether the gauge rose or fell, was at 68.5 yesterday. A reading above 70 signals to some analysts the shares are poised for a fall.

Bank of China Ltd, the country's second-biggest listed lender, slid 0.15 yuan, or 2.7 percent, to 5.52 yuan. It rose 9.5 percent over the past two days. Industrial Bank Co, part-owned by a unit of HSBC Holdings Plc, declined 0.88 yuan, or 3.2 percent, to 26.95 yuan, after a 10 percent, two-day gain.

Baoshan Iron & Steel, China's biggest steelmaker, rose 0.16 yuan, or 1.7 percent, to 9.84 yuan. Net income probably rose 56 percent to 3.44 billion yuan in the three months ended December 31, based on the median estimate of eight analysts surveyed by Bloomberg News. The Shanghai-based company is scheduled to report today.

Angang Steel Co, China's fourth-largest steelmaker by output, climbed 0.52 yuan, or 3.8 percent, to 14.18 yuan. Laiwu Steel Corp, a steelmaker in the easternShandongprovince, added 0.45 yuan, or 3.4 percent, to 13.75 yuan.

The following stocks rose or fell and the stock symbols are in brackets after companies' names.

China Shipping Development Co (600026 CH), the nation's biggest oil carrier, gained 0.71 yuan, or 5.2 percent, to 14.50 yuan.

The company said 2006 profit gained 1.7 percent to 2.76 billion yuan as it expanded its fleet to carry more crude oil and coal.

Separately, the company said it ordered 12 bulk carriers to transport coal for 3.27 billion yuan.

China United Telecommunications Corp (600050 CH), which controls the nation's second-largest cell phone operator, fell 0.04 yuan, or 0.7 percent, to 5.65 yuan. ItsHong Kong-listed unit China Unicom Ltd (762 HK) said last year's profit dropped 24 percent to 3.73 billion yuan.

Ningbo Bird Co (600130 CH), China's second-biggest mobile-phone maker, slid 0.23 yuan, or 4 percent, to 5.50 yuan. The company said it will report a first-quarter loss because of falling sales amid competition. The company didn't provide a loss figure in a statement to theShanghai Stock Exchangetoday.