Shares in Shanghai were almost unchanged yesterday after posting the biggest monthly drop in November since 1994 as losses in airlines erased gains in finance and real estate shares.

 

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, dipped 0.07 percent, or 3.17 points, to close at 4,868.61 on the first trading day of the month.

 

Turnover in the Shanghai market increased slightly to 70 billion yuan (US$9.49 billion), versus last week's daily average of 65 billion yuan.

 

The key index tumbled 18.19 percent last month, the biggest monthly drop in more than 13 years.

 

"Blue chips such as China Shipping Container Lines Co and China Pacific Insurance are expected to start trading in the coming days, which will absorb market liquidity as investors sell shares to buy new stocks," said Xu Zheng, an analyst from Minsheng Securities Co Ltd.

 

Wu Kongyin, analyst from United Securities Co Ltd, expects the index to bounce back should it fall to 4,770 points.

 

PetroChina Co, which accounts for more than 20 percent of the Shanghai index's weighting, declined 3.43 percent to new low of 30.44 yuan.

 

China Railway Group, the world's third largest construction company, gained 68.5 percent, or 3.29 yuan, to close at 8.09 yuan on the first day of its IPO in the Shanghai market.

 

China Vanke rose 3.11 percent to 32.53 yuan per share and Poly Real Estate jumped 4.18 percent to close at 71.24 yuan.

 

Shenzhen Development Bank rallied 6.15 percent to 38.30 yuan.

 

China Southern Airlines dropped 6.47 percent to 23.98 yuan and Air China lost 4.77 percent to 22.35 yuan. Shanghai Airlines was off 1.71 percent to 15.50 yuan and China Eastern Airlines shed 1.3 percent to end at 16.70 yuan.

 

(Shanghai Daily December 4, 2007)