Index futures may lift gauge
By Pan Xiaoyi |
March 29, 2010, Monday
|
Print Edition
Print Edition
SHANGHAI stocks are likely to rise this week as undervalued blue chips are expected be boosted by the looming launch of stock index futures, analysts said.
The Shanghai Composite Index rose 1.34 percent on Friday to end at 3,059.72 last week, paring a weekly loss, as annual earnings reports indicated blue chips may be undervalued amid the lackluster market.
The China Financial Futures Exchange plans to launch the Chinese mainland's first stock index futures contract on April 16 in Shanghai. The futures will be based on the CSI 300 index that tracks the top 300 mainland-listed companies. Meanwhile, margin trading and short selling are also expected to debut by the end of this month.
"The capital to be invested in the innovative financial tools will target blue chips which are undervalued while shares with a high price-earnings ratio will face pressure," said Zhang Gang, an analyst at Southwest Securities Co. "The rebound in the heavyweights may push up the index."
Analysts said positive signs in the macro economy back the index.
"New yuan loans in March are seen to total up to 1 trillion yuan (US$146 billion) - a positive impact on the market," said Yi Xiaobin, a Galaxy Securities Co analyst.
The Shanghai Composite Index rose 1.34 percent on Friday to end at 3,059.72 last week, paring a weekly loss, as annual earnings reports indicated blue chips may be undervalued amid the lackluster market.
The China Financial Futures Exchange plans to launch the Chinese mainland's first stock index futures contract on April 16 in Shanghai. The futures will be based on the CSI 300 index that tracks the top 300 mainland-listed companies. Meanwhile, margin trading and short selling are also expected to debut by the end of this month.
"The capital to be invested in the innovative financial tools will target blue chips which are undervalued while shares with a high price-earnings ratio will face pressure," said Zhang Gang, an analyst at Southwest Securities Co. "The rebound in the heavyweights may push up the index."
Analysts said positive signs in the macro economy back the index.
"New yuan loans in March are seen to total up to 1 trillion yuan (US$146 billion) - a positive impact on the market," said Yi Xiaobin, a Galaxy Securities Co analyst.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
