(Aug. 27, 2009 - Chinavestor) Metal and resource stocks weighted down indices in Asia, sending the Shanghai Composite Index and the Hang Seng Index lower on Thursday. The Shanghai Composite Index shed 21.20 points or 0.71% to 2,946.39 as metal stocks pulled the index lower. Aluminum Corp. of China (SHA:601600), also known as Chalco, A-shares fell 2.99% while Angang Steel (SHA:000898) declined 2.97% on economic worries and profit outlook. Chalco reported a significant net loss with poor outlook earlier this week.
China stocks pulled the Hang Seng index down 213.57 points or 1.04% to 20,242.75 by the close on Thursday. Aluminum Corp. of China (HKG:2600) H-shares fell 3.8% while Angang Steel (HKG:0347) and Maanshan Steel (HKG:0323) fell even harder. Power companies and CNOOC Ltd. (NYSE:CEO)(HKG: 0883) H-shares fell following weak earnings from China's offshore oil specialist. But shares of China Telecom (HKG:0726) rose 1.0% following 2009 H1 interim results.
Index futures point to a narrow open, leaving Chinese stocks in a vulnerable position. Chinese stock has lost their shine according to the overbought/oversoldreport this morning. ("Telecom Sector in China under Pressure") If history can be a guide, Hong Kong trading can be useful a proxy for NYSE listed China stocks. In turn this means a lower open for CNOOC Ltd. (NYSE:CEO) but a stronger day for China Telecom (NYSE:CHL).