A-shares kick off June on a sour note

Stock markets in Shanghai and Shenzhen closed out a roller coaster session Monday with modest losses, suggesting a lack of clear trading cues.

The Shanghai Composite Index fell 1.34 points, or 0.06 percent, to close at 2,299.25; while the Shenzhen Component Index slipped 0.07 percent, or 6.71 points, to finish at 9,251.24.

Neither index strayed far from the break-even point as topical sectors posted mixed results on the day. Public transportation, satellite navigation and geothermal energy shares were the markets' best performers Monday. Environmental protection, Internet and logistics stocks though took some of the biggest dives.

The aviation manufacturing sector blasted off as well on reports that the Shenzhou 10 manned spacecraft has been moved to its launch site. China Spacesat Co advanced 6.69 percent to 19.31 yuan ($3.15) on the day. Shaanxi Aerospace Power Hi-Tech Co edged up 1.22 percent to 14.89 yuan.

Listed property developers also inched higher Monday on speculations that a government urbanization meeting scheduled for early June will support the real estate market. The Poly Real Estate Group Co tacked on 0.90 percent to 12.35 yuan, while China Merchants Property Development Co climbed 1.15 percent to 28.93 yuan.

Although the Shanghai Composite Index faltered back below the psychologically-important 2,300-point mark during the first trading day in June, most analysts were optimistic that the downturn in A-shares would be temporary.

Combined turnover at the two markets totaled 201.32 billion yuan, down 8.19 percent compared with Friday.