April 27, 2010 (Chinavestor) Investors sent the Shanghai Composite Index (SHA:000001) -61.6 points or -2.1% lower to 2,907.93 as low commodity prices and property market woes continued to mount pressure on Chinese equities on Tuesday. The sell-off was universal with metal, energy and resource stocks suffering the most. Shares of Aluminum Corp. of China (SHA:601600), the third largest maker of the metal in the world, fell -4.4% while Jinduicheng Molybdenum Co. (SHA:601958) fell -4.0%. Jiangxi Copper (SHA600362), the largest producer of the metal, fell -2.28%. Petrochina Co. Ltd. (SHA:601857), the largest oil producer in China , declined -2.30%.
Trading in Hong Kong was similar to Shanghai on Tuesday. The Hang Seng Index shed -325.3 points or -1.5% to 21,261.79 by the close. The sell-off was universal in Hong Kong as well, stocks that fell outnumbered those that advanced seven to one. Metal and resource stocks fell as the dollar strengthened. Greece's ill continue to pressure the euro, sending oil and commodity prices lower. H-shares of Aluminum Corp. of China (HKG:2600) fell -3.7%, slightly less than its A-shares in Shanghai. Jiangxi Copper (HKG:0358) tumbled -2.8%, more than its A-shares in Shanghai. Angang Steel (HKG:0347) shed -2.8% while Petrochina (HKG:0857), an index heavy weight, tumbled -1.41%.
Chinese large cap stocks outperformed smaller ones in New York on Monday, a trend that is going to change on Tuesday. China stock market summary April 26 , 2010. China BAK Battery (NASDAQ:CBAK) reported 2010 first quarter financial report after the close on Monday, sending her shares tumbling in pre-market trading. The company reported dismal revenue growth while staying in the red for the quarter. Additionally, CBAK lowered FY 2010 guidance, suggesting the turnaround is not in the corner.
Technical indicators tracking the performance of Chinese indices and key equities suggests the Shanghai Composite Index (SHA:000001) became oversold. Expect the Morgan Stanley China ETF (NYSE:CAF), a proxy for the Mainland's most liquid index, to tumble on Tuesday. The rest of the indicators have been trading in a narrow range, oil gold and other key commodities subsided.