Key index set to rise but economic data watched
By Staff Reporter |
November 8, 2010, Monday
|
Print Edition
Print Edition
SHANGHAI stocks are set to climb higher this week amid abundant liquidity, market observers noted, adding that the market will also be influenced by October's macro-economic statistics.
"The affluent market liquidity will remain but there won't be very strict tightening policies and the government wants to ensure stable economic growth," Galaxy Securities' Yi Xiaobin wrote in a note. He predicted the index may range between 3,000 and 3,200 points in this week.
The Shanghai Composite Index added 1.38 percent to close at 3,129.50 points on Friday. The gauge gained a collective of 5.1 percent last week and completed a sixth weekly gain.
Huatai Securities' analyst Zhang Gang also predicted the key index will keep climbing higher generally but said investors should prepare for a correction.
The National Bureau of Statistics is set to release macro-economic data, including the Consumer Price Index and industry output, for October on Thursday, and market observers said the statistics will serve as an indication of how the stock market will perform in the next few weeks.
China's inflation may rise to 4 percent or higher next year, according to Zhu Baoliang, chief economist for the State Information Center.
The CPI may climb the fastest in the first three months in 2011, Zhu said at a forum in Guangzhou, Xinhua news agency reported. He added that the pace of economic growth may slow in 2011.
The country's official Purchasing Managers' Index, a comprehensive gauge of industrial activities, rose to 54.7 percent in October. A reading above 50 percent indicates expansion. The index has been in expansionary territory for 20 consecutive months.
"The affluent market liquidity will remain but there won't be very strict tightening policies and the government wants to ensure stable economic growth," Galaxy Securities' Yi Xiaobin wrote in a note. He predicted the index may range between 3,000 and 3,200 points in this week.
The Shanghai Composite Index added 1.38 percent to close at 3,129.50 points on Friday. The gauge gained a collective of 5.1 percent last week and completed a sixth weekly gain.
Huatai Securities' analyst Zhang Gang also predicted the key index will keep climbing higher generally but said investors should prepare for a correction.
The National Bureau of Statistics is set to release macro-economic data, including the Consumer Price Index and industry output, for October on Thursday, and market observers said the statistics will serve as an indication of how the stock market will perform in the next few weeks.
China's inflation may rise to 4 percent or higher next year, according to Zhu Baoliang, chief economist for the State Information Center.
The CPI may climb the fastest in the first three months in 2011, Zhu said at a forum in Guangzhou, Xinhua news agency reported. He added that the pace of economic growth may slow in 2011.
The country's official Purchasing Managers' Index, a comprehensive gauge of industrial activities, rose to 54.7 percent in October. A reading above 50 percent indicates expansion. The index has been in expansionary territory for 20 consecutive months.
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