Index seen to rise this week
By Rich Zhu |
April 18, 2011, Monday
|
Print Edition
Print Edition
SHANGHAI'S key stock index may rise this week despite a widely-expected announcement by the Chinese central bank yesterday that bank reserve requirement ratio would go up.
The reserve ratio will increase by 0.50 percentage point from Thursday to 20.5 percent for big banks, the People's Bank of China said on its website yesterday. The hike is the latest move by the PBOC after inflation in March rose to a 32-month high in the country.
The Shanghai Composite Index is expected to range from 3,000 to 3,200 this week, analysts said.
The index closed at 3,050.53 last week, up 0.68 percent for the week.
"The market expected inflation (for March) to be high and that there would be one reserve ratio rise by the end of this month," said Qian Qimin, an analyst at Shenyin & Wanguo Securities.
He predicted the key index to fluctuate between 3,020 and 3,130 this week.
China's Consumer Price Index rose 5 percent annually in the first three months. In March, the CPI hit 5.4 percent, a 32-month high since July 2008, the National Bureau of Statistics said last Thursday.
China's economy grew 9.7 percent in the first quarter to 9.63 trillion yuan (US$1.45 trillion), above the government's goal of 8 percent growth for 2011.
Investors should pay attention to bank, real estate, energy and steel as these sectors offer potential to increase value as they ride on the sizzling economy, said Zhang Li, a Huatai Securities' analyst.
The reserve ratio will increase by 0.50 percentage point from Thursday to 20.5 percent for big banks, the People's Bank of China said on its website yesterday. The hike is the latest move by the PBOC after inflation in March rose to a 32-month high in the country.
The Shanghai Composite Index is expected to range from 3,000 to 3,200 this week, analysts said.
The index closed at 3,050.53 last week, up 0.68 percent for the week.
"The market expected inflation (for March) to be high and that there would be one reserve ratio rise by the end of this month," said Qian Qimin, an analyst at Shenyin & Wanguo Securities.
He predicted the key index to fluctuate between 3,020 and 3,130 this week.
China's Consumer Price Index rose 5 percent annually in the first three months. In March, the CPI hit 5.4 percent, a 32-month high since July 2008, the National Bureau of Statistics said last Thursday.
China's economy grew 9.7 percent in the first quarter to 9.63 trillion yuan (US$1.45 trillion), above the government's goal of 8 percent growth for 2011.
Investors should pay attention to bank, real estate, energy and steel as these sectors offer potential to increase value as they ride on the sizzling economy, said Zhang Li, a Huatai Securities' analyst.
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