By Zhang Shidong
Feb. 17 (Bloomberg) -- China’s stocks fell the most in a month, led by Jiangxi Copper Co. and Aluminum Corp. of China Ltd. after metals prices declined on speculation a recovery in demand may be delayed beyond the second half.
Jiangxi Copper, China’s second-biggest producer of the metal, lost 2.6 percent, while Aluminum Corp., the nation’s biggest maker of the lightweight metal, retreated 2.5 percent. Copper for delivery in three months dropped 2.9 percent to $3,330 a metric ton at 5:17 p.m. on the London Metal Exchange. Aluminum fell $27 to $1,350 a ton.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, declined 22.94, or 1 percent, to 2,366.45 as of 10:05 a.m. local time. It rose 6.3 percent over the past two days, the biggest two-day gain since Jan. 6. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dropped 1.3 percent to 2,430.96.
Kweichow Moutai Co., the maker of Moutai, the fiery liquor used at official banquets, advanced 3.4 percent after Shenyin & Wanguo Securities Co. advised investors to buy the stock, on expectation first-quarter profit will top estimates.
China Oilfield Services Ltd., the drilling unit of the nation’s third-largest oil producer, added 4.2 percent, the second day of advance after state-owned China National Petroleum Corp. said yesterday the nation may set up an oil fund to boost exploration.
The Shanghai Composite has gained 30 percent this year, the most among 90 stock gauges worldwide tracked by Bloomberg, as the government unveiled plans to support industries from shipbuilding to textiles. It now trades at 18.7 times earnings, compared with 49 times at the peak.
The gauge is still down 69 percent from its record of 6,092.06 reached on Oct. 16, 2007. Share prices tumbled last year as the global recession curbed demand for the nation’s exports and industrial productions shrank.
To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net
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