SHANGHAI'S stock market fell the most in more than a week yesterday as material producers tumbled ahead of Sunday's Greek election on concerns the global crisis will damp demand.

The Shanghai Composite Index lost 0.99 percent to 2,295.95 points, the biggest decline since June 4.

"The market is still digesting investors' pessimistic sentiment," said He Xu, analyst at Goldstate Securities. "The recovery will not arrive until the Greek elections deliver good results."

He recommended buying blue chip stocks as they are undervalued in general at the moment, as did the China Securities Regulatory Commission.

Moody's has cut Spain's rating to reflect the rising likelihood of a Greek exit from the eurozone. Retail sales in the US fell for a second month in May, the US Commerce Department figures showed on Wednesday.

Cement firms were among the worst performers. Anhui Conch Cement Co, China's biggest cement producer, lost 1.5 percent to 15.87 yuan (US$2.49). Huaxin Cement Co tumbled 2.7 percent to 14.31 yuan.

Source:shanghaidaily