Shenzhen shares close morning lower amid institutional selling

SHENZHEN (AFX-ASIA) - A-share prices closed the morning lower after falling from their initial highs amid institutional selling, dealers said.

They said the selling may be driven by concerns that the expected launch of the government's plan for the flotation of state shares in listed firms could have a negative impact on the market.

Nonetheless, sentiment remained generally firm amid hopes of further liquidity-driven gains, particularly after the expected launch of several open-ended securities funds, they said.

B-share prices also closed the morning lower after dropping from sharp highs amid a surge in institutional selling towards the close of the session, they said.

While there are widespread expectations of a surge in buying from June 1,when domestic individuals gain the right to use foreign currency deposited after February 19 to buy B-shares, some investors may be seeking to take profits before this date, amid expectations of a surge in profit-taking thereafter.

The component A- and B-share index closed 30.52 points lower at 4,815.57 on turnover of 6.42 bln yuan after trading to a high of 4,870.53 and a low of 4,814.46.

The A-share sub-index dropped 32.19 points to 5,258.22 on turnover of 4.89 bln yuan after trading between 5,311.81 and 5,257.71.

The B-share sub-index closed 19.58 points higher at 2,236.02 after trading between 2,317.33 and 2,232.17.

Fujian Jiuzhou dropped 0.11 yuan to 6.82 on volume of 3.3 mln shares, while China Bicycle shed 0.14 yuan to 11.13 on 2.8 mln shares and Monkey King declined 0.07 yuan to 7.99 on 2.7 mln shares.

Shenzhen Development Bank fell 0.06 yuan to 15.38 on 1.9 mln shares.

Angang New Steel dropped 0.06 yuan to 4.6 on 1.8 mln shares, while Beijing Shougang shed 0.08 yuan to 10.3 on 1.4 mln shares.

Among B-shares, Bengang Steel Plates rose 0.08 hkd to 5.33 on 19 mln shares, while Guangdong Electric Power gained 0.01 hkd to 7.16 on 11.6 mln shares.

Guangdong Expressway dropped 0.24 hkd to 6.15 on 6.2 mln shares.

Hubei Sanonda declined 0.3 hkd to 9.31 on 3.6 mln shares.

Related stock : (NIL)