In Asia, energy shares were hammered amid fears that demand would dry up if the world economy throttles back. Hong Kong-listed PetroChina Ltd., the country's biggest oil and gas company, lost 3.3 percent. CNOOC, China National Offshore Oil Corp., fell 3.7 percent. Energy Resources of Australia was down 3.5 percent.
Mainland Chinese shares tracked the declines elsewhere, with shares in coal, oil and cement leading the losses. The Shanghai Composite Index lost 1.3 percent to 2,525.53 while the Shenzhen Composite Index lost 1.3 percent to 1,128.02.
Asian bank stocks followed their European counterparts lower. Hong Kong-listed Bank of China Ltd. slid 3.2 percent, while the Industrial and Commercial Bank of China, the world's biggest bank by market value, lost 2 percent. Commonwealth Bank of Australia Ltd., the nation's largest lender, fell 2.3 percent.
Benchmark oil for September delivery was down $1.17 to $81.21 a barrel in electronic trading on the New York Mercantile Exchange. Crude fell $5.20, or 5.9 percent, to finish at $82.38 on Thursday.
Most Asian markets also sank last week versus week-ago levels. Hong Kong’s Hang Seng closed lower by 1.13% to 19,399.92 from 19,620.01, while Shanghai’s composite index also fell by 2.28% to 2,534.36 from 2,593.17. Tokyo’s Nikkei also closed lower by 2.72% to 8,719.24 from 8,963.72.
Trading tips for week august 22 2011
Based on last week’s losses, investors are expected to reposition their respective portfolios and lock in gains from certain sectors. Mining stocks, for one, are said to have already been overbought.
The market will continue to decline a little bit as investors follow leads overseas before it will consolidate, The current problems of the US and Europe will not disappear overnight and solutions should be for the long term and not short-term.
Because of continuing worries over the US and euro zone crises, investors are advised to exercise caution in buying even as they engage in bargain hunting this week
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