Real-estate and related stocks pull mainland indices downward
By Yu Xi Source:Global Times Published: 2012-10-25 23:30:10
Stock markets in Shanghai and Shenzhen dipped Thursday mainly due to slides in the heavily weighted real estate, auto and coal sectors.
The Shanghai Composite Index declined 14.41 points, or 0.68 percent, to close at 2,101.58; while the Shenzhen Component Index slumped 51.10 points, or 0.59 percent, to finish at 8,602.81.
Both indices opened lower Thursday, but pushed north in the morning session on strong performance by nuclear power related stocks following a government announcement that construction of nuclear plants is to resume. The construction of new nuclear plants was suspended following Japan's Fukushima disaster in March 2011.
Nuclear power-related stocks outperformed the rest of the market for the whole day. Shenzhen Auto Electric Power Plant Co rose by the daily limit to end at 19.77 yuan ($3.17), while SUFA Technology Industry Co climbed 1.20 percent to 21.10 yuan.
Stocks exposed to the domestic real estate market continued their retreat Thursday, with the heavily weighted coal and auto sectors dragging mainland markets into negative territory by the end of the day's trading.
Jiangxi Zhongjiang Real Estate dived 6.90 percent to 6.34 yuan. AVIC Real Estate Holding Co Ltd slumped 6.65 percent to 5.19 yuan. Haima Automobile Group Co dived 6.36 percent to 3.09 yuan. Shanxi Xishan Coal and Electricity Power Co went down 1.08 percent to 12.82 yuan.