China stock index ends down 1.8 pc

SHANGHAI: China's main stock index ended down 1.79 per cent on Tuesday as already weak market sentiment took further blows from a tumble on overseas stock market and pressure from possible further monetary tightening.

The benchmark Shanghai Composite Index ended the morning down at 3,751.839 points, after setting the low of 3,722.164, the lowest since July 6. Losing Shanghai shares overwhelmed gainers by 836 to 58, with more than 15 Shanghai A shares plunging by their 10 per cent daily limit.

The index shed 3.6 per cent on Monday at its lowest close in more than eight months. Turnover in Shanghai A shares remained thin at 37.4 billion yuan ($5.3 billion), although up from Monday morning's 33.6 billion yuan. Chinese Premier Wen Jiabao said it is not easy to achieve 4.8 per cent inflation target for 2008 during his annual news conference following the closing session of the National People's Congress, or parliament.

China State Shipbuiding tumbled 8.0 per cent to 129.80 yuan despite saying its net in 2007 is more than double. "Panic and gloomy sentiment spreaded across the board, no matter good news or bad, massive selling off has been triggered amid uncertainty," said Zhou Lin, analyst at Huatai Securities.

Source : The Economic Times