Index likely to touch 3,000
By Richard Fu |
March 28, 2011, Monday
|
Print Edition
Print Edition
SHANGHAI'S key stock index is set to touch the 3,000-point level this week following last week's consolidation, but analysts rule out any sharp increase in the gauge until key quarterly economic data are released in April.
Investors also seemed to have shrugged off the impact from the Japan earth quake and tsunami last week because the Shanghai Composite Index rose 2.44 percent to 2,977.81.
But the average daily trading value fell 23 billion yuan (US$3.5 billion) from the previous week to 137.9 billion yuan as investors may have taken to the sidelines as the tension in Libya escalated.
"The short-term hiccup caused by the Japan quake is gone, and the market may hit the 3,000 mark," Shenyin & Wanguo Securities, a leading brokerage, said in a note.
Last week's gain also showed investors have taken in their stride any impact of the People's Bank of China's decision to raise the reserve requirement ratio for commercial banks by 0.5 percentage point, announced on March 18 and effective last Friday.
The reserve ratio hike is a common tool used by the central bank to drain cash from the economy to prevent funds from being used for speculative investment.
Oil, metals and grain producers may rise after the PBOC forecast higher prices for the commodities globally in a report last Friday.
The market will be closed next Monday and Tuesday for the Qingming Festival.
Investors also seemed to have shrugged off the impact from the Japan earth quake and tsunami last week because the Shanghai Composite Index rose 2.44 percent to 2,977.81.
But the average daily trading value fell 23 billion yuan (US$3.5 billion) from the previous week to 137.9 billion yuan as investors may have taken to the sidelines as the tension in Libya escalated.
"The short-term hiccup caused by the Japan quake is gone, and the market may hit the 3,000 mark," Shenyin & Wanguo Securities, a leading brokerage, said in a note.
Last week's gain also showed investors have taken in their stride any impact of the People's Bank of China's decision to raise the reserve requirement ratio for commercial banks by 0.5 percentage point, announced on March 18 and effective last Friday.
The reserve ratio hike is a common tool used by the central bank to drain cash from the economy to prevent funds from being used for speculative investment.
Oil, metals and grain producers may rise after the PBOC forecast higher prices for the commodities globally in a report last Friday.
The market will be closed next Monday and Tuesday for the Qingming Festival.
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