Key index not seen to rebound sharply
By Feng Jianmin |
May 16, 2011, Monday
|
Print Edition
Print Edition
The Shanghai stock market is not seen to rebound sharply this week due to tight liquidity, analysts said.
The Shanghai Composite Index closed generally flat last week, edging up by just 0.02 percent to 2,871.03 after data released by China's top statistics bureau revealed faster inflation and lower industrial output in April.
Figures released last Tuesday by China's customs also showed imports grew at a slower rate as the government's tight monetary policies have crimped domestic demand.
"The consumer price index is likely to hit 5.5 percent in May," said Caitong Securities in a note. "The market is still struggling with a rapidly-growing inflation, a slowdown in economic growth, and tight liquidity." The CPI is a broad measure of inflation.
The brokerage predicted the stock index may gain slightly this week, led by banks and energy producers.
Analysts forecast the index at between 2,750 and 2,950 points.
It recommended investors look at stocks in the consumer goods and new energy sectors as the market "is looking to overcome the negative impact (of the monetary tightening policies)."
It said as all companies have released their earnings reports, ''we expect no negative news in the market in the short term."
The Shanghai Composite Index closed generally flat last week, edging up by just 0.02 percent to 2,871.03 after data released by China's top statistics bureau revealed faster inflation and lower industrial output in April.
Figures released last Tuesday by China's customs also showed imports grew at a slower rate as the government's tight monetary policies have crimped domestic demand.
"The consumer price index is likely to hit 5.5 percent in May," said Caitong Securities in a note. "The market is still struggling with a rapidly-growing inflation, a slowdown in economic growth, and tight liquidity." The CPI is a broad measure of inflation.
The brokerage predicted the stock index may gain slightly this week, led by banks and energy producers.
Analysts forecast the index at between 2,750 and 2,950 points.
It recommended investors look at stocks in the consumer goods and new energy sectors as the market "is looking to overcome the negative impact (of the monetary tightening policies)."
It said as all companies have released their earnings reports, ''we expect no negative news in the market in the short term."
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