Shanghai Composite drops 0.93% on profit booking

Mainland China equity market closed lower on Thursday, 09 April 2015, amid profit booking following sharp recent rally, with consumer and commodity related stocks leading decline ahead of tomorrow's inflation data. The Shanghai Composite Index declined 37.28 points, or 0.93% to 3957.53 at the close, after briefly surpassing a 4000 points level, its highest level since March 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, sank 33.66 points, or 0.78%, to 4262.14.

Investors elected to book profit after the benchmark Shanghai Composite Index yesterday briefly surpassed 4000 points level, a key psychological resistance level, for the first time since early 2008, as investors bet authorities will increase monetary stimulus to bolster economic growth. The index has doubled since January 2014 as traders borrowed a record amount of money to buy shares, new investors opened stock accounts at an unprecedented pace and government officials endorsed the rally.

Powered by Capital Market - Live News