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Shanghai shares down 0.27%, snapping 4-day rally
Aggregated Source: Shanghai Daily: Business

SHANGHAI stocks dropped for the first time in five days today amid concerns over China's economic performance and tight liquidity.

The benchmark Shanghai Composite Index slipped 0.27 percent to settle at 2,317.75 points. Daily turnover was 103.5 billion yuan (US$17 billion).

The Organization for Economic Cooperation and Development (OECD) yesterday joined the International Monetary Fund to lower its 2013 China growth forecast to 7.8 percent, down from an earlier estimate of 8.5 percent, due to weak demand and uncertainties in the global economy.

The IMF yesterday slashed its prediction for China's 2013 economic growth to 7.75 percent from 8 percent, citing weaker global demand.

Qilu Securities expected the market to seesaw within a narrow range before the economic data for May are released.

The market also slumped on tight liquidity at the end of May. The seven-day repurchase rate, a gauge of interbank funding availability, gained 47.40 basis points, the biggest gain in more than a week to 4.14 percent in Shanghai today as banks are gathering cash to meet month-end requirements.

Steelmakers led the decliners as steel prices declined due to weak demand. Fushun Special Steel Co slipped 2.2 percent to 5.69 yuan. Xining Special Steel Co decreased 1.4 percent to 4.66 yuan. Inner Mongolia Baotou Steel Union Co lost 1.4 percent to 4.86 yuan.

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Copyright Shanghai Daily: Business