Stocks falter as investors search for direction

Stock markets in Shanghai and Shenzhen contracted Tuesday amid an absence of clear trading cues.

The key Shanghai Composite Index closed at 2,297.67 after giving up 29.05 points, or 1.25 percent; while the Shenzhen Component Index lost 86.49 points, or 0.93 percent, to finish at 9,226.64.

Combined trading volume at the two exchanges totaled 171 billion yuan ($27.53 billion), up from Monday's 164 billion yuan.

Both indices opened lower as the heavily weighted banking, securities, nonferrous metals and coal sectors all dipped into losses early on.

Natural gas shares took a tumble Tuesday following their big wins Monday after local media reported the National Development and Reform Commission had shot down rumors that natural gas prices would be increased in April. Changchun Gas Co dropped 5.88 percent to 9.12 yuan. Xinjiang Haoyuan Natural Gas Co shed 3.92 percent to 40.90 yuan.

Financial stocks also broadly weakened. China Minsheng Banking Corp declined 4.55 percent to 10.50 yuan. Haitong Securities Co gave up 4.27 percent to 10.75 yuan.

On the up side though, stocks exposed to 4G telecommunications recorded impressive gains after reports broke that the Ministry of Industry and Information Technology is planning to issue mobile virtual network operating licenses to private companies sometime in May. Longmaster Information & Technology Co surged past the 10-percent limit to 92.95 yuan.