China Bourse May Have Bottomed Out

By RTT News, 
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(RTTNews.com) - The China stock market has finished lower now in four straight sessions, plummeting almost 70 points or 3.5 percent in that span. The Shanghai Composite Index settled just above the 2,000-point plateau, and now the market may bounce higher Tuesday on support from that level.

The global forecast for the Asian markets is mixed to higher, with many of the oversold regional markets likely to see bargain hunting - albeit with caution ahead of this week's FOMC meeting and U.S. employment data. The European markets were slightly higher and the U.S. bourses were mixed, and the Asian markets figure to split the difference.

The SCI finished sharply lower on Monday with heavy losses among the property and resource stocks, although the financial shares provided mild support.

For the day, the index plunged 33.03 points or 1.62 percent to finish at 2,003.49 after trading between 2,000.14 and 2,035.99 on turnover of 68.5 billion yuan. The Shenzhen Composite Index tumbled 29.45 points or 2.84 percent to end at 1,007.27 on turnover of 82.2 billion yuan.

Among the actives, Guanghui Energy plummeted by the 10 percent daily limit, while China Life Insurance shed 2.8 percent, China Construction Bank added 0.3 percent, Agricultural Bank of China collected 0.4 percent and Industrial and Commercial Bank of China gained 0.3 percent.

The lead from Wall Street offers little clarity as stocks saw considerable volatility on Monday. Upbeat corporate and economic news generated some buying interest, but lingering worries about Ukraine also weighed on the markets.

The NASDAQ eased 1.16 points or less than a tenth of a percent to 4,074.40, while the Dow rose 87.28 points or 0.5 percent to 16,448.74 and the S&P 500 climbed 6.03 points or 0.3 percent to 1,869.43.

Early in the session, traders reacted positively to news on the merger-and-acquisition front on news that drug giant Pfizer (PFE) is seeking to renew discussions about a potential takeover of British rival AstraZeneca ( AZN ).

Susser Holdings (SUSS) and Furiex Pharmaceuticals ( FURX ) also posted standout gains after agreeing to be acquired by Energy Transfer Partners ( ETP ) and Forest Labs ( FRX ), respectively.

Positive sentiment was also generated when the National Association of Realtors said its pending home sales index surged 3.4 percent to 97.4 in March after edging down by 0.5 percent to a revised 94.2 in February. Economists had been expecting a gain of 0.6 percent.

However, traders were reluctant to buy stocks ahead of the Federal Reserve's monetary policy announcement on Wednesday, as well as the monthly jobs report on Friday. Lingering concerns about the ongoing crisis in Ukraine also helped to keep buying interest subdued.

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This article appears in: News Headlines

Referenced Stocks: AZN , ETP , FRX , FURX , LFC

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