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China shares edge lower amid gloomy profit outlook
AP - Saturday, December 27
SHANGHAI, China - Chinese stocks edged lower Friday as early gains succumbed to gloom over earnings prospects for many listed firms.
The benchmark Shanghai Composite Index edged down 0.9 point, or just 0.05 percent, to 1,851.52. The Shenzhen Composite Index of China's second, smaller market fell 0.6 percent to 569.38.
The Shanghai index gave up 8.3 percent for the week as investors reckoned with a slew of bad economic news and expectations for lower earnings in the current and next quarters.
With billions of newly tradable shares due to hit the market as lockup periods expire in coming weeks, there was little cause for optimism, analysts said.
"The market's performance today reflected investors' moods. People are worried about the likely profit slowdown in early 2009," said Xu Yan, a strategist at Shenyin Wanguo Securities, in Shanghai.
Trading was thin as many investors sat on the sidelines.
PetroChina, the Shanghai benchmark's heaviest weighted share, gained 0.5 percent to 10.19 yuan. Some banks and insurers also rose on bargain hunting. But those gains were outweighed by declines in property shares.
China Vanke Ltd., China's biggest property developer, lost 2.5 percent to 6.53 yuan while Poly Real Estate dropped 3.1 percent to 14.79 yuan.
Yunnan Aluminum fell 4.3 percent to 5.12 yuan as investors cashed in Thursday's gains from news of planned government purchases for national stockpiles.
In currency dealings, China's yuan was unchanged at 6.8485 to the U.S. dollar.
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