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Stock index down after fluctuations

(China Daily/Agencies)
Updated: 2009-10-13 08:09

The benchmark stock index fell Monday, after changing direction at least 13 times, as a decline by commodity producers on lower metal prices countered gains by automakers.

Baoshan Iron & Steel Co, the country's biggest steelmaker, dropped 1.3 percent and Jiangxi Copper Co retreated 2 percent.

SAIC Motor Corp, the nation's largest carmaker, rose 1 percent and Chongqing Changan Automobile Co gained 4.6 percent after newspaper reports said auto sales increased.

"Commodity producers and steelmakers face overcapacity as the economic recovery isn't solid enough to spur explosive growth in demand," said Zhang Ling, who helps oversee about $7.21 billion at ICBC Credit Suisse Asset Management Co in Beijing.

The Shanghai Composite Index fell 17.23, or 0.6 percent, to 2,894.48 at the close. About nine stocks rose for every eight that declined on the gauge. The measure advanced 4.8 percent on October 9 following the eight-day holiday.

The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, lost 0.4 percent, falling to 3,151.63.

The Shanghai index declined 6.1 percent in the third quarter on concern a slowdown in lending growth would stifle the world's third-largest economy.

China's four biggest commercial banks extended new yuan-denominated loans of about 110 billion yuan ($16billion) in September, the lowest monthly figure in 2009, Caijing magazine reported, citing industry data.

Baoshan Steel lost 1.3 percent to 6.65 yuan. The company will cut prices of hot-rolled and cold-rolled steel products by 400 yuan a metric ton, Xinhua reported.

Tangshan Iron & Steel Co, owned by China's second-biggest steelmaking group, slid 1.4 percent to 6.36 yuan. Wuhan Iron & Steel Co, the third biggest, declined 1.9 percent to 7.19 yuan.

The average spot price for domestic hot-rolled steel sheet fell 0.6 percent on October 9 to the lowest point since April 23, data from Beijing Antaike Information Development Co showed.

Hang Seng falls

Hong Kong stocks fell for the first time in six days.

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The Hang Seng Index fell 0.9 percent to close at 21,299.35, with only two of its 42 stocks advancing. The gauge climbed as much as 0.6 percent in the morning, led by mainland banks, after the $300-billion sovereign wealth fund said it would continue increasing its stakes in the nation's three biggest lenders.

The benchmark measure rose 5.5 percent in the previous five days and has rallied 88 percent from a four-month low on March 9. The average price of stocks on the index has risen to 17 times estimated earnings from 11 times at the start of the year.

The Hang Seng China Enterprises Index, which tracks H shares of mainland companies, declined 1 percent to 12,375.93.