Index may struggle as no sharp rally seen
By Richard Fu |
December 26, 2011, Monday
|
Print Edition
Print Edition
SHANGHAI'S stock index may struggle this week to touch the 2,300-point level in the last trading week of the year as observers rule out a sharp rebound after the market suffered seven consecutive weeks of losses.
They cited the general weak sentiment, a lack of positive news and most investors tending to stay away from the market as the year end nears for their not so rosy optimism.
The Shanghai Composite Index rose 0.9 percent on Friday to end at 2,204.78, the first rise in a week, trimming last week's loss to 0.9 percent. The index gained on Friday because of speculation the government may ease monetary policies and relax curbs on the property market to prevent the economy from slowing further.
Southwest Securities analyst Zhang Gang is more optimistic that the index will test 2,300 this week. He also said year-end window dressing, a common practice by fund managers and other institutions to boost portfolio, may help support the index.
But Minsheng Securities analyst Wu Chunhua said slower growth in earnings of state-owned enterprises and exports signaled the economy may get worse.
Observers cautioned about the railway sector. CSR Corp, China's biggest train maker, may face pressure today after Railway Minister Sheng Guangzu said on Friday rail building will be cut further next year on rising concerns over debts and safety issues.
They cited the general weak sentiment, a lack of positive news and most investors tending to stay away from the market as the year end nears for their not so rosy optimism.
The Shanghai Composite Index rose 0.9 percent on Friday to end at 2,204.78, the first rise in a week, trimming last week's loss to 0.9 percent. The index gained on Friday because of speculation the government may ease monetary policies and relax curbs on the property market to prevent the economy from slowing further.
Southwest Securities analyst Zhang Gang is more optimistic that the index will test 2,300 this week. He also said year-end window dressing, a common practice by fund managers and other institutions to boost portfolio, may help support the index.
But Minsheng Securities analyst Wu Chunhua said slower growth in earnings of state-owned enterprises and exports signaled the economy may get worse.
Observers cautioned about the railway sector. CSR Corp, China's biggest train maker, may face pressure today after Railway Minister Sheng Guangzu said on Friday rail building will be cut further next year on rising concerns over debts and safety issues.
- 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.
