Shanghai market mixed over uncertain future

SHANGHAI stocks swung between gains and losses this morning as the market remained uncertain about future trends due to a lack of stimulus measures.

The key Shanghai Composite Index shed 0.13 percent, or 2.78 points to 2,109.42 points. Turnover stood at 20.1 billion yuan (US$3.2 billion) at midday.

The market index is very likely to fall below 2,100, according to Soochow Securities Co.

The nation's economy is close to the bottom as domestic investment and consumption have shown signs of recovery. But some leading indicators such as PMI and electricity output remain weak, indicating economic rebound will take some time, the company said.

The continuing delay in stimulus measures was sending the index lower, Wanlian Securities said.

Distillers led the fall amid worries over their future. Citic Securities analyst Huang Wei said the liquor sector might experience a slowdown in production after eight years' heady growth.

Kweichow Moutai Co, a leading producer of high-end liquor in China, dropped 4 percent to 229.64 yuan. Sichuan Tuopai Shede Wine Co tumbled 4.5 percent to 32.39 yuan. Shanxi Xinghuacun Fen Wine Factory Co slumped 4.6 percent to 36.93 yuan.

Ping An Bank Co gained among lenders, adding 0.8 percent to 15.03 yuan, after it reported a first-half net profit growth of 43 percent from a year earlier. China Merchants Bank Co rose 0.9 percent to 10.01 yuan. The Industrial and Commercial Bank of China Ltd, the nation's largest lender, increased 0.8 percent to 3.83 yuan.

via Shanghai Daily: Business http://www.shanghaidaily.com/nsp/Business/2012/08/17/Shanghai+market+mixed+over+uncertain+future