Index ends week on disappointing note

SHANGHAI'S key stock index fell yesterday due to widespread disappointment that no further stimulus packages were announced at the legislature's meetings in Beijing.

The Shanghai Composite Index dropped 1.26 percent, or 28.07 points, to 2,193.01.

Losers outnumbered gainers 543 to 316 while 21 remained unchanged. Turnover shrank to 105.5 billion yuan (US$15.51 billion), compared to 154.4 billion yuan the previous trading day.

The local benchmark index gained 5.29 percent over the week, boosted by a surge of more than 6 percent on Wednesday on speculation that Premier Wen Jiabao was to unveil more forceful measures to shore up the economy. Turnover shrank to 540 billion yuan from 654 billion yuan last week.

"The index fluctuated more widely after market expectations fizzled. Shares show mixed performance, and a strong rebound could not be sustained," GF Securities Co wrote in a research note.

Lenders were weak yesterday. The Industrial and Commercial Bank of China retreated 2.56 percent to 3.80 yuan, and the Bank of Communications slid 2.48 percent. China Minsheng Banking Corp was down 2.2 percent to 4.88 yuan. The Bank of China fell 2.19 percent to 3.58 yuan.

Real estate developers continued to do well as the property market showed signs of recovery as the volume of transactions increased.

Gemdale Corp rose 1.88 percent to 9.21 yuan. Shanghai-based Shimao Property Co added 0.76 percent.