Metal and technology hit market

Source: Xinhua | 2018-11-27

SHANGHAI stocks closed lower yesterday on weak industry profit data.

The Shanghai Composite Index edged down 0.14 percent to close at 2,575.81 points. Shares of iron and steel providers, non-ferrous metal as well as chemical companies were among the biggest decliners.

Investors also became cautious after China’s Ministry of Industry and Information Technology said that the total profit of software and information technology service industry declined 4.6 percent in October compared with the same month last year. This marks the first month of a decline in industry profit.

Shares of iron and steel providers fell after a report from the China Iron and Steel Industry Association stated that pressure on the supply side would remain. In October, China’s daily output of crude steel averaged 2.66 million tons, a drop of 1.19 percent from the previous month.

The Association said that as winter is usually a slow season, local enterprises need to carefully analyze changes in demand to ensure the steady operation of the market.