Coal Sector Lends Support to Markets After Adjustments
Stock markets in Shanghai and Shenzhen experienced turbulent adjustments Wednesday afternoon but were able to recovery some of their lost momentum toward the close of trading.
The benchmark Shanghai Composite Index closed at 2,275.34 after falling 0.73 points, or 0.03 percent; while the Shenzhen Component Index finished at 9,154.87, up 0.49 percent, or 44.42 points.
Both the Shanghai and Shenzhen stock markets opened lower, dragged down by weak performances from banking, property and non-ferrous metals stocks. Rebounds from the liquor and coal sectors reversed the downward trend in late trading.
The aviation and biomedical sectors were hit by adjustments following rallies during previous trading days, shedding 1.99 percent and 1.74 percent respectively on the day. Aviation equipment maker Sichuan Haite High-tech Co dropped 3.31 percent to 9.36 yuan ($1.50). Biomedical equipment maker Grandhope Biotech Co lost 4.42 percent to 18.40 yuan.
The coal sector jumped 3.37 percent and was a major force behind the afternoon's late gains. Yunnan Yunwei Co advanced to the 10-percent daily limit to 4.68 yuan. Analysts say the cold winter weather currently affecting much of China would provide space for the sector to climb further in coming days.
Liquor stocks continued Tuesday's drive. Hebei Hengshui Laobaigan Liquor Co gained 8.02 percent.
Automobile stocks gained from news that Hainan Province will host a global conference on new energy cars from this Thursday until next Monday. Guangdong's BYD Co surged 5.25 percent to 21.26 yuan.
The agricultural, animal husbandry and fishery sector, which has been quiet over the past few trading days, rebounded 1.72 percent. Hubei Wuchangyu Co rose 10.03 percent to 5.81 yuan.
Combined trading volume at the two exchanges totaled 211.3 billion yuan Wednesday, down slightly from Tuesday's 213.8 billion yuan.