SHARES in Shanghai tumbled yesterday amid a slide in blue chips, including banks, brokers, insurers and oil companies.

The benchmark Shanghai Composite Index lost 79.35 points, or 2.76 percent, to 2,794.75. The key index touched an intraday low of 2,769.12 and an intraday high of 2,893.47, with the daily fluctuation sitting at 4.33 percent. Declines outnumbered gains 747 to 53, while 53 companies ended unchanged.

Turnover shrank slightly to 43.84 billion yuan (US$6.36 billion) from the previous day's 43.22 billion yuan.

All members of the financial sector, including banks, brokers and insurers, dropped yesterday with brokerages leading the slide.

Shanghai-based Haitong Securities Co plunged to 20.33 yuan, hitting the 10-percent daily fluctuation cap. Citic Securities Co lost 6.99 percent to 24.76 yuan.

"The brokers are the main drags on the index," said a Shiji Investment spokesperson.

This no great surprise as brokers are inevitably the first to feel the impact of a stock market in a bear run.

Industrial & Commercial Bank of China, the nation's biggest bank, dipped 0.19 percent to 5.17 yuan, while Shenzhen-based China Merchants Bank decreased 1.36 percent to 23.89 yuan.

"Panic selling dragged the index down in the afternoon trading session," said Hong Yanhua, a Huiyang Investment Co analyst.

However, Hong also said that a rebound may occur in coming days.

High-rising international oil prices also cast a shadow on that sector in China.

PetroChina, the country's biggest oil company, fell 0.91 percent to 15.24 yuan. China Petroleum & Chemical Corp, or Sinopec, declined 0.5 percent to 11.83 yuan.

"A wait-and-see attitude is advised to pinpoint the market pattern," Hong said.

Hong's view was echoed by Wan Bin, a GF Securities analyst, who also expects an imminent market rebound.