SHARES in Shanghai dipped yesterday, the last trading day of the month. Investors were cautious before the National Day holiday and there was concern about the number of new shares that will be introduced to trading next month - 60 percent more than were unlocked in September.
The benchmark Shanghai Composite Index slipped 0.16 percent, or 3.72 points, to 2,293.78. Turnover was 66.6 billion yuan (US$9.73 billion), shrinking from Thursday's 83.5 billion yuan.
The index has gained 10.54 percent this week, following a government ruling that scrapped stamp tax on purchasing stocks.
"The index is sure to fluctuate after surging for several days, but it won't fall below 2,240 points," said Chen Jian, an analyst with United Securities.
Losers outnumbered those that gained 427 to 408, while 73 remained unchanged.
Blue chips and financial sector stocks showed mixed performance. Sinolink Securities Co rose 5.51 percent to 32.34 yuan. Haitong Securities was up 9.46 percent to 21.52 yuan.
On the losing side, Bank of China retreated 1.08 percent to close at 3.66 yuan. Industrial & Commercial Bank of China, the nation's biggest lender, dipped 0.46 percent 4.35 yuan.
PetroChina, the biggest index component, fell 1.31 percent to 12.84 yuan.
Real estate developers were among those that gained. Poly Real Estate Group surged 9.92 percent to 14.85 yuan. China Merchants Property Development Co rose 6.60 percent to 12.92 yuan.
Shares in 49 listed companies will be floated next month, which is expected to bring pressure to the market. The total value of shares unlocked in October will be 85.3 billion yuan, a 65 percent increase on the number of new shares that entered the market this month.
Meanwhile, listed companies prepared for the release of their third-quarter reports. Reports will be released no later than October 31, the Shanghai and Shenzhen stock exchanges announced on their Websites, yesterday.
In total, 584 firms have forecast their third-quarter performances. Sixty percent expect higher profits, according to stock data and the consulting firm Wind.
Shanghai and Shenzhen stock exchanges will reopen on October 6th.