Mar. 17, 2011 (Xinhua News Agency) -- Mkt talk: Chinese stock market dives, tracking global markets
BEIJING, Mar.17 (Xinhua) ?Chinese shares closed more than one percent lower on Thursday, tracking global market falls overnight on concerns over Japan's nuclear crisis. Investors' worries of further tightening monetary policies also aggravated the weakness.
On Thursday, the benchmark Shanghai Composite Index closed 1.14 percent lower at 2,897.30 andthe smaller Shenzhen composite index dropped 1.76 percent to close at 1, 284.96, on almost flat turnover.
Salt stocks, including Lantai Industrial (600328.SH) and Yunnan Salt Chemical (002053.SZ), were the strongest sector Thursday, with both stocks up by the limit-up of 10 percent, on widespread rumors that salt is effective against nuclear radiation.
Other stocks supposed to benefit from the Japan quake that soared sharply in previous days retreated sharply on profit-taking.
Gold miners all dropped after gold bullion prices fell to around 1,390 US dollars per ounce. Shandong Gold Mining Co (600547.SH), the country's largest gold miner, dropped by 2.06 percent. Zijin Mining Group Co (OOTC:ZIJMY) (601899.SH), China's largest gold producer, declined by 3.05 percent.
Metal sector also reversed their previous outperformance with China Nonferrous Metal (000758.SZ) dropping by 4.03 percent. Jiangxi Copper Co (600362.SH), China's largest producer of the metal lost 2.98 percent, and Aluminium Corp of China (601600.SH) declined 2.87 percent.
Steelmakers, one of the best performers in previous two days, also retreated quickly with Baoshan Iron & Steel Co (600019.SH), the largest listed steelmaker in China, down 5.37 percent and Hebei Iron & Steel (000709.SZ), the country's largest steel maker by output down 2.25 percent.
Oil producers outperformed on speculation that China may raise oil prices next week to reflect price growth on the global market. PetroChina (601857.SH), the biggest heavyweight on the two bourses and the biggest Chinese oil producer, rose 0.78 percent and Sinopec (NYSE:SNP) Corp. (600028.SH), the largest refinery oil producer in China, gained 1.06 percent. The two contributed significantly to the Shanghai composite index in which they had a weight of around 15 percent.
Bouts of panic selling didn't stop till the market close. (Contributed by Gaoyuan, gaoyuan@xinhua.org)